Trump Concedes Ethics Rules to Pass Crypto Bill
President Trump agreed to strict new ethics restrictions to secure passage of the Senate's cryptocurrency market structure bill, a move that could define regulatory standards for the $2.3 trillion industry.
President Donald Trump agreed to bind himself and his spouse to new conflict-of-interest rules to secure support for the pending cryptocurrency bill. This concession follows weeks of pressure from key senators who demanded ethical safeguards as a condition for their votes.
The Senate is set to vote on the legislation this Tuesday, a decision that will determine whether the $2.3 trillion digital asset market receives formal federal regulation. The outcome hinges on whether these new restrictions satisfy enough members of Congress to bridge the partisan divide.
New Restrictions Target Executive Influence
The proposed language would bar all federally elected officials and their spouses from issuing digital assets. This provision specifically targets the meme coins launched by the president and First Lady Melania Trump during the transition to his second term.
Senate leaders reported that the White House accepted these terms with minimal resistance during mid-July meetings. The agreement aims to neutralize allegations of self-dealing by establishing clear boundaries between executive power and private crypto ventures.
Divestment and Enforcement Mechanisms
An additional proposal requires the president to place crypto holdings in a blind trust. If the value of these assets reaches a specified threshold, the president would be forced to divest his interests.
The bill also grants state attorneys general the authority to enforce these rules alongside the Justice Department. This dual enforcement mechanism addresses Democratic concerns about relying on a Trump-appointed attorney general to police executive conflicts of interest.
High Stakes for Market Legitimacy
The president has reported over $1.4 billion in revenue from crypto businesses last year. A significant portion of this income comes from World Liberty Financial, a venture launched by his sons that has generated more than $500 million in sales.
According to GN markets/crypto (en-US) reporting, failure to pass the bill could trigger increased campaign spending by the industry in upcoming midterm elections. Senators argue that rejecting the Clarity Act would reject necessary restrictions on political actors in the crypto space.
