Trump Caves on Crypto Bill, Agrees to Stricter Ethics Rules
President Donald Trump has agreed to stricter ethics rules as part of a broader cryptocurrency bill set for a critical Senate vote this week. The legislation, which aims to regulate digital assets, initially contained a single restriction that would prohibit federally elected representatives from creating or issuing cryptocurrencies.
A pivotal coalition of Democrats and Republican Senator Thom Tillis argued that the initial terms were insufficient to manage potential conflicts of interest surrounding Trump's cryptocurrency holdings. They called for specific statutory language authorizing state attorneys general to enforce the legislation alongside the federal Justice Department.
Trump has concurred with about 80% of the compromise put forward by Tillis and Sen. Ruben Gallego, which includes a mandate requiring officials to divest from or place into a blind trust any significant financial stake in entities that launch digital currencies.
The revised text will also include provisions permitting state attorneys general to pursue legal action against crypto exchanges if they trade digital tokens banned by the primary text. This change addresses concerns from Democratic state attorneys general who might wield federal enforcement power as a political tool.