Washington – In a significant bipartisan win, President Trump has signaled his agreement to the majority of a new ethics provision attached to the expansive cryptocurrency bill that is slated for a key vote this Tuesday. The amendment, championed by Sen. Thom Tillis (R‑NC) and Rep. Ruben Gallego (D‑AZ), expands enforcement authority to state attorneys general and tightens conflict‑of‑interest rules for federal officials.
Key elements of the ethics provision
The original draft of the legislation would have barred all federally elected officials, their spouses, and federal judges from issuing digital assets. Critics argued that this fell short of addressing potential conflicts tied to President Trump’s own crypto holdings. In response, the revised provision now requires any official with a “significant” financial interest in a cryptocurrency‑issuing entity to either divest that interest or place it in a blind trust.
Additionally, the amendment empowers state attorneys general to step in and enforce the law alongside the Justice Department. It also permits them to sue a crypto exchange if it lists a digital asset that the bill ultimately bars.
Bipartisan support and Senate strategy
Republican senators Cynthia Lummis of Wyoming, Tim Scott of South Carolina, and John Boozman of Arkansas praised the compromise, noting that it gives “a meaningful role” to state attorneys general while preserving the bill’s core objectives. “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,” White House crypto adviser Patrick Witt said on X.
Democratic leaders, including Sen. Gallego, welcomed the added safeguards, saying the changes address concerns about potential conflicts of interest and ensure robust enforcement across the nation.
White House concerns and internal debate
Behind the scenes, some White House officials expressed reservations about granting state attorneys general enforcement power, fearing it could become a political weapon for either party. Nevertheless, a senior GOP aide confirmed that President Trump has agreed to roughly 80% of the proposal, primarily the state‑attorney‑general component.
The updated bill, expected to be released later Sunday, will incorporate these provisions before the Senate moves to a final vote.
Implications for the crypto industry
If enacted, the legislation would represent the most comprehensive federal framework for digital assets to date, setting standards for transparency, consumer protection, and conflict‑of‑interest oversight. Industry stakeholders are watching closely, as the enforcement role of state attorneys general could lead to a patchwork of enforcement actions across the country.
For now, the bipartisan effort signals a rare moment of cooperation on a high‑stakes issue, with President Trump’s agreement helping to bridge the partisan divide and move the bill forward.
Original reporting: Alexandria, VA News – WTOP News — read the source article.
