Washington — In a significant bipartisan breakthrough, President Trump has agreed to a core ethics provision embedded in the sweeping cryptocurrency legislation that is slated for a key vote this Tuesday. The agreement, confirmed by three of the bill’s Republican authors, covers roughly 80% of the language proposed by Sen. Thom Tillis (R‑NC) and Rep. Ruben Gallego (D‑AZ).
State attorneys general given enforcement role
The provision grants state attorneys general the authority to enforce the crypto measure alongside the Justice Department. Republican Sens. Cynthia Lummis of Wyoming, Tim Scott of South Carolina, and John Boozman of Arkansas highlighted the “meaningful role” for state officials, saying it balances federal oversight with local enforcement capabilities.
Democratic leaders, including Sen. Tillis and Rep. Gallego, had pushed for this addition, arguing that without state involvement, conflicts of interest could persist, especially given President Trump’s own crypto holdings. The bill already bars all federally elected officials, their spouses, and federal judges from issuing digital assets.
Additional safeguards and divestiture requirement
An updated version of the legislation will also require any official with a “significant” financial interest in a cryptocurrency‑issuing entity to either divest that interest or place it in a blind trust. This measure aims to prevent potential conflicts and aligns with the administration’s broader ethics agenda.
Furthermore, the bill allows state attorneys general to sue a crypto exchange if it lists a digital asset that the overall legislation bars, providing another layer of consumer protection.
White House response
White House crypto adviser Patrick Witt praised the progress, stating, “At every step of the way during the Clarity Act negotiations, the White House and Senate Republicans have been responsive to Democrats’ stated policy objectives. After more than a year’s worth of negotiations, it’s time to pass this bipartisan bill.” He added that the administration remains committed to ensuring the legislation protects both investors and the integrity of the financial system.
Behind the scenes, some White House officials expressed concern that giving state attorneys general enforcement power could be weaponized politically, either by Democratic state lawyers against the president and GOP officials or by Republican attorneys general against Democratic officials. Nonetheless, the senior GOP aide briefed to reporters said the president’s agreement reflects a pragmatic compromise that moves the bill forward.
Next steps
The revised bill is expected to be released later Sunday, with the full text to be considered by the Senate on Tuesday. Lawmakers from both parties will weigh the ethics provisions alongside the broader regulatory framework for digital assets, which includes market‑making rules, consumer protections, and anti‑money‑laundering measures.
Critics of the bill, primarily from the crypto industry, argue that the added state enforcement could create a patchwork of regulations that stifles innovation. Supporters counter that clear, consistent oversight is essential for protecting investors and maintaining confidence in the emerging digital economy.
As the debate continues, the administration’s willingness to negotiate on ethics and enforcement signals a commitment to bipartisan solutions on complex technology issues.
Original reporting: KTBS 3 (Shreveport) — read the source article.
