Trump Accepts State Enforcement Clause in Crypto Bill
President Trump agreed to a bipartisan ethics provision allowing state attorneys general to enforce new crypto rules.
President Donald Trump agreed to a key ethics provision in the pending cryptocurrency bill. Republican senators said this move includes a role for state attorneys general in enforcement. The legislation faces a critical vote this Tuesday.
The bill originally only barred federal officials and judges from issuing digital assets. A group of Democrats and Senator Thom Tillis argued this was insufficient. They cited concerns over conflict of interest related to the president’s crypto holdings.
Enforcement Powers Granted to States
Senator Ruben Gallego and Senator Tillis demanded broader enforcement mechanisms. They sought authority for state legal teams to act alongside the Justice Department. Trump’s agreement grants state attorneys general the power to sue exchanges over banned assets.
Trust Requirements for Officials
A senior aide said Trump accepted about eighty percent of the proposal. The updated bill requires divestment or blind trusts for significant crypto interests. This applies to officials with financial stakes in entities issuing digital assets.
White House Concerns Over Politics
White House officials initially opposed granting states this power. They feared Democratic attorneys general would use the clause as a political tool. They also worried Republican states could target elected Democrats. The final text balances these enforcement risks with legislative needs.
