Trump Relents on Crypto Ethics Rules, but Senate Vote Remains Uncertain
President Donald Trump agreed to new ethics rules for cryptocurrency to get a bill across the line in the Senate, but it's unclear if this will be enough. The bill, known as the Clarity Act, aims to regulate the $2.3 trillion crypto market and bring digital assets into the mainstream.
Senators Cynthia Lummis and Bernie Moreno met with Trump in mid-July to discuss the bill and its implications for him personally. They proposed that he agree to conflict-of-interest restrictions, which would bar him and his wife from issuing meme coins and require him to put his crypto holdings in a blind trust.
Trump agreed to these measures, but only after being convinced by industry officials and politicians about the importance of passing the bill. The updated version of the bill includes language that would allow state attorneys general to enforce the law, including suing a crypto exchange if they list a digital asset that would be barred in the overall bill.
Democrats have been pushing for stronger ethics provisions, arguing that Trump's influence over the crypto industry is a major concern. Senator Angela Alsobrooks said that she will not vote for any legislation that does not cover ethics and that an enforcement mechanism involving state attorneys general is essential.