Trump Accepts State Enforcement Powers in Crypto Bill
The President agreed to let state attorneys general enforce new digital asset rules, clearing a major legislative hurdle for the market structure bill.
President Donald Trump has agreed to approximately 80% of a bipartisan ethics proposal embedded in the cryptocurrency market structure bill. This concession resolves a primary obstacle to the legislation’s passage. Republican senators confirmed the deal on Sunday night. The bill faces a critical vote in the Senate on Tuesday.
The agreement grants state attorneys general a significant role in enforcing the new regulations. Previously, the draft limited enforcement authority to the federal Justice Department. Senators Thom Tillis and Ruben Gallego demanded broader oversight to address conflict-of-interest concerns. Their support is essential to reach the required majority for passage.
State enforcement powers expand
The updated text allows state legal officials to sue cryptocurrency exchanges. This applies if a platform lists a digital asset that the bill explicitly bans. White House officials initially opposed this clause. They feared Democratic state lawyers could use the power for political advantage. The final compromise retains the enforcement mechanism while addressing some administrative concerns.
Mandatory divestiture for officials
The bill now requires federally elected officials to divest significant financial interests in issuers. Alternatively, these assets must be placed in a blind trust. This rule extends to spouses of elected officials and federal judges. The provision aims to prevent conflicts of interest in digital asset markets. It goes beyond the original ban on issuing new digital assets by officials.
Senate vote scheduled for Tuesday
Sponsors Cynthia Lummis, Tim Scott, and John Boozman announced the final details. They described the state attorney general provision as a meaningful addition. Aides to Democratic and Republican key figures did not immediately respond to comment requests. The White House maintained silence on the specific percentage of the proposal accepted. The revised bill text is expected to be released later this week.
