Trump Backs State Crypto Enforcement in Revised CLARITY Act
President Donald Trump has accepted a key compromise in the CLARITY Act, allowing state attorneys general to enforce new ethics restrictions on crypto exchanges. The concession is part of a revised Senate proposal released Sunday, described by Republicans as their 'last, best and final' offer to Democrats.
The legislation, scheduled for a procedural vote on Tuesday at 2:15 p.m. ET, gives state officials the power to bring enforcement actions against crypto exchanges that list digital assets prohibited under the bill. This change is significant because the White House previously resisted allowing state officials to enforce the ethics provisions.
Under the compromise, state attorneys general could sue federal elected officials over digital-asset matters, addressing concerns raised by Democrats about conflict of interest when alleged violations involve the president or other senior officials.