Trump Bows to Crypto Bill Ethics Demands Amid Senate Vote Looms
President Donald Trump has agreed to new ethics rules in exchange for his support of a sweeping cryptocurrency bill. The bill, which aims to bring the $2.3 trillion crypto market into mainstream legitimacy, had been stalled due to concerns over conflict-of-interest provisions affecting Trump and his family.
The White House met with Senate Republicans in July to discuss the bill's language, and it was agreed that Trump would abide by conflict-of-interest restrictions. This includes barring federally elected officials and their spouses from issuing digital assets, which would prevent Trump from launching meme coins like he did on the cusp of his second inauguration.
However, a tougher ethics proposal presented by Senators Ruben Gallego and Thom Tillis was initially met with skepticism by White House officials. This proposal required the president to put his crypto holdings in a blind trust and divest when they reach a certain value. It also granted state attorneys general the power to enforce the law.
After some persuasion, Trump agreed to about 80% of the proposal, including language that allows state attorneys general to sue a crypto exchange if it lists a digital asset barred in the overall bill. The updated bill includes requirements for federally elected officials and their spouses to either divest or place significant financial interests in an entity that issues cryptocurrencies into a blind trust.