Trump Agrees to Ethics Rules for Crypto Bill

The fate of the Clarity Act, a cryptocurrency bill in the Senate, hinges on whether President Trump's concessions to ethics provisions will be enough. The bill could determine crypto legitimacy into law and impact the $2.3 trillion market.

Around mid-July, Sens. Cynthia Lummis and Bernie Moreno met with Trump at the White House to discuss the bill. They presented language that would bar all federally elected officials and their spouses from issuing digital assets, including meme coins like those launched by Trump and his wife in January. Trump agreed to this measure.

However, a tougher ethics proposal was later introduced, which would require the president to put his crypto holdings in a blind trust and divest when they reach a certain value. This provision includes allowing state attorneys general to step in and enforce the law in addition to the Justice Department. Trump agreed to about 80% of this proposal, mainly focusing on the state attorneys general provision.

The updated bill released Sunday includes requirements for officials to either divest or place their 'significant' financial interests in a blind trust. However, some Democrats are still unsatisfied with these concessions, planning to prepare another counteroffer on ethics.