Trump Agrees to Crypto Bill Ethics Rules Amid $2.3 Trillion Market Tension

President Donald Trump has agreed to new ethics rules in order to get a crypto bill passed through the Senate, but it may not be enough. The $2.3 trillion market is waiting with bated breath for Tuesday's pivotal vote on the Clarity Act.

The bill aims to bring legitimacy to the digital assets industry and has been met with resistance from Trump due to his significant crypto wealth. He amassed over $1.4 billion in revenue from crypto businesses last year, including 'governance tokens' through World Liberty Financial, a venture launched by his sons.

Senators Lummis and Moreno went to the White House in mid-July and told Trump that he would have to abide by conflict-of-interest restrictions to get key Democrats on board with the bill. Trump agreed to bar federally elected officials and their spouses from issuing digital assets, including meme coins.

However, a tougher ethics proposal was presented later, requiring the president to put his crypto holdings in a blind trust and divest when they reach a certain value. This provision would also allow state attorneys general to step in and enforce the law, a critical component for Democrats who are concerned about the Department of Justice's ability to do so impartially.

Trump has agreed to about 80% of this proposal, including the role for state attorneys general, but it is unclear if this will be enough to secure passage of the bill. The vote on Tuesday could determine whether Washington cements crypto legitimacy into law or unleashes even more campaign cash in the midterm elections.

Presidents have historically been exempt from federal conflict-of-interest laws, but Trump's unprecedented corruption and conflict of interest has led some to argue that a different rubric is needed. The White House has maintained that the president stays out of family business decisions administered by his sons.