Trump Backs State Enforcement Powers in Crypto Bill

President Donald Trump agreed to eighty percent of a new bipartisan ethics provision. This move addresses conflict-of-interest concerns in a major cryptocurrency bill. The legislation faces a key vote in the Senate this Tuesday.

Republican senators Tim Scott, Cynthia Lummis, and John Boozman announced the agreement. They stated that the final text grants state attorneys general a meaningful role in enforcement. This inclusion was the primary demand from Democratic members and Senator Thom Tillis.

State enforcement powers added

The original draft only barred federal officials and judges from issuing digital assets. Senator Tillis and Senator Ruben Gallego argued this was insufficient. They demanded that state legal authorities could also enforce the new rules.

White House officials initially opposed this change. They feared Democratic state lawyers would use it as a political tool. They also worried Republican lawyers could target Democratic officials.

A senior aide confirmed the compromise on Sunday night. The president accepted the language allowing state attorneys general to sue crypto exchanges. This applies if an exchange lists a banned digital asset.

Mandatory divestiture requirements

The updated bill text includes a new financial requirement. Officials must divest or place significant interests in a blind trust. This applies to any entity that issues cryptocurrencies.

This provision targets the president’s personal crypto wealth directly. It aims to remove potential conflicts of interest. The bill now moves forward with broader bipartisan support.

Legislative path forward

The Senate will vote on the measure this week. Senator Gallego and Senator Tillis were essential for its passage. Their support was contingent on the ethics and enforcement changes.

The White House has not commented on the final details. Aides to the key Democratic sponsors also declined to speak. The market awaits the official release of the revised bill text.