Trump Backs Stricter Crypto Rules, Including Bar on Official Digital Assets
A sweeping cryptocurrency bill headed for a key vote this week has received significant backing from President Donald Trump, who agreed to a substantial portion of a stringent ethics proposal included in the legislation. The provision would bar federally elected officials and their spouses, as well as federal judges, from issuing digital assets.
Trump's agreement comes after negotiations between White House officials and Republican senators, including Sens. Cynthia Lummis, Tim Scott, and John Boozman. The trio stated that Trump's approval includes a 'meaningful role' for state attorneys general to enforce the crypto measure should it become law.
The bill initially had only one provision related to digital assets, which was deemed insufficient by a core group of Democrats, including Sen. Ruben Gallego and Sen. Thom Tillis. They argued that this didn't address conflict-of-interest issues surrounding Trump's crypto wealth, and their votes would be necessary for the bill to advance.
The updated version of the bill will include language allowing state attorneys general to sue a crypto exchange if they list a digital asset barred under the overall bill. Additionally, it would require divestment or placement in a blind trust any 'significant' financial interest in an entity that issues cryptocurrencies.