Trump Concedes on Crypto Ethics Enforcement Amid CLARITY Act Vote

p>The US crypto legislation has taken a significant turn as President Donald Trump agreed to give state attorneys general a role in enforcing new ethics restrictions. The decision is part of a Senate proposal released on Sunday, described by Republicans as their 'last, best and final' offer to Democrats. The compromise includes the power for state officials to bring enforcement actions against crypto exchanges that list digital assets prohibited under the legislation.

Under the agreement, Trump has accepted roughly 80% of a bipartisan ethics framework developed by Republican Sen. Thom Tillis and Democratic Sen. Ruben Gallego. This concession is significant as it addresses one of the biggest obstacles to a deal, which had previously placed primary enforcement power with the Justice Department.

The change in stance is notable given that Senator Cynthia Lummis had previously stated 'absolutely not' when asked about allowing state attorneys general to sue federal elected officials over digital-asset matters. The issue has evolved since July, and Trump's agreement marks a reversal in the negotiations.

Despite this concession, the CLARITY Act still faces challenges as it requires at least seven members of the Democratic caucus to vote in favor if every Republican votes to advance the bill. The legislation is scheduled for a procedural vote on Tuesday at 2:15 p.m. ET.