President Donald Trump has agreed to roughly 80 percent of a strict bipartisan ethics proposal in a major cryptocurrency bill headed for a key vote. Negotiated over more than a year, the measure includes a significant enforcement role for state attorneys general and rules regarding digital asset holdings.
Washington is bracing for a consequential congressional showdown this Tuesday over sweeping cryptocurrency legislation known as the Clarity Act. The broader legislative package, moving toward a crucial vote, addresses deep-seated conflict-of-interest concerns surrounding presidential crypto wealth through a newly adjusted ethics framework.
Bipartisan Demands and White House Concessions
The legislative battle intensified when a core group of Democrats, joined by Sen. Thom Tillis, R-N.C., insisted that earlier drafts of the bill failed to properly address the digital asset holdings tied to President Donald Trump. Their support became essential for advancing the legislation past Tuesday’s threshold. Alongside Sen. Ruben Gallego, D-Ariz., and several congressional peers, Tillis pushed aggressively for provisions granting state attorneys general independent enforcement authority alongside the Justice Department.
Private discussions revealed deep skepticism within the West Wing. According to two individuals familiar with the negotiations, White House officials worried that Democratic state attorneys general could weaponize the enforcement power politically against the president and other Republican officials, while noting the reciprocal risk of Republican attorneys general targeting Democrats. Despite those internal reservations, a senior GOP aide briefing reporters anonymously on Sunday night confirmed that the administration ultimately shifted its stance.
New Enforcement Powers and Financial Disclosures
The revised legislative text, released late Sunday, incorporates roughly 80 percent of the proposals championed by Tillis and Gallego. Republican Sens. Cynthia Lummis of Wyoming, Tim Scott of South Carolina, and John Boozman of Arkansas jointly announced the agreement, highlighting what they termed a meaningful enforcement role for state-level prosecutors.
Under the updated provisions, state attorneys general gain the explicit authority to take legal action against any crypto exchange that lists a digital asset prohibited by the federal measure. Furthermore, the updated bill requires officials to either divest or place into a blind trust any significant financial stake in entities that issue cryptocurrencies. The initial framework had previously limited restrictions to barring federally elected officials, their spouses, and federal judges from issuing digital assets directly.
Awaiting Tuesday’s Legislative Test
With the updated text unveiled ahead of the week’s proceedings, attention shifts directly to Capitol Hill and the upcoming floor vote.
