Trump Concedes to Strict Crypto Ethics Rules for Senate Bill

Donald Trump accepted a requirement to place his cryptocurrency holdings in a blind trust. This concession aims to secure Senate passage of the Clarity Act. The legislation targets conflict of interest for federal officials. It also bars elected leaders and spouses from issuing new digital tokens.

A pivotal vote is scheduled for Tuesday. The outcome determines the legal status of the $2.3 trillion crypto market. The deal hinges on whether these new restrictions satisfy enough Democratic senators. Failure to pass the bill risks increased campaign spending by the industry in midterms.

Specific Restrictions on Meme Coins

The bill prohibits all federally elected officials and their spouses from issuing digital assets. This directly impacts the Trump family. It bans the launch of new meme coins by the president and first lady. The rule applies to all federal judges as well.

Enforcement Powers Expand to States

State attorneys general will gain authority to enforce the law. This addition addresses concerns about federal enforcement neutrality. Democrats previously doubted a Trump-appointed Justice Department would act against him. The provision allows local legal teams to monitor compliance.

Financial Disclosures Reveal Large Exposure

The president reported over $1.4 billion in crypto business revenue last year. More than $500 million came from World Liberty Financial. This venture was launched by his sons in 2024. The new rules could force divestment from these specific holdings if they reach a certain value.

According to GN markets/crypto (en-US), these negotiations occurred in July. Senators Lummis and Moreno presented the initial restrictions. Additional proposals followed from Senators Gallego and Tillis. The White House initially resisted state enforcement powers. Acceptance of the blind trust requirement marks a significant policy shift.