Trump Approves State Enforcement Powers in Crypto Bill
President Trump has agreed to approximately 80% of a bipartisan ethics proposal, granting state attorneys general new enforcement powers over digital assets.
President Donald Trump has agreed to approximately 80% of a stringent ethics proposal embedded in the upcoming cryptocurrency legislation. This concession grants state attorneys general a meaningful role in enforcing the new rules. The agreement was confirmed by three senior Republican senators who drafted the bill.
The legislative package is scheduled for a critical vote this Tuesday. Previously, the text only prohibited federal officials and their spouses from issuing digital assets. Democratic senators and Senator Thom Tillis argued that this restriction was insufficient to address potential conflicts of interest.
State enforcement powers expanded
The updated bill allows state attorneys general to sue crypto exchanges that list prohibited digital assets. This change responds to demands from Senator Ruben Gallego and other Democrats. They sought legal tools to enforce the law beyond the federal Justice Department.
White House officials initially opposed this provision. They feared Democratic state lawyers might use it as a political weapon against the president. A senior GOP aide noted that the final text balances these concerns with enforcement needs.
Mandatory divestiture for officials
The new text requires officials to divest or place in a blind trust any significant financial interest in digital asset issuers. This measure targets the crypto wealth of the president and other elected leaders. It aims to eliminate direct financial conflicts of interest in the sector.
Patrick Witt, the White House crypto adviser, stated that the administration remained responsive to Democratic policy objectives. He emphasized that the negotiations have lasted for more than a year. The goal is to pass a bipartisan bill before the current session ends.
Bipartisan support secured for vote
Senators Cynthia Lummis, Tim Scott, and John Boozman announced the compromise on Sunday night. They confirmed that the White House accepted the key enforcement language. This development secures the necessary votes from the Democratic caucus.
According to GN markets/crypto (en-US), the bill represents a major shift in regulatory oversight. It moves from a pure prohibition on issuance to active state-level enforcement. The final version of the bill is set for release immediately.
