President Donald Trump has agreed to a significant portion of a stringent ethics proposal that is part of broader cryptocurrency legislation headed for a key vote this week, according to three of the bill's main Republican authors. The agreement addresses concerns about potential conflicts of interest related to cryptocurrency wealth.
The sweeping bill initially included a provision to bar federally elected officials, their spouses, and federal judges from issuing digital assets. However, a core group of Democrats and Sen. Thom Tillis, R-N.C., argued this did not go far enough.
Senators Tillis and Ruben Gallego, D-Ariz., along with other Democrats, had pushed for language that would allow state attorneys general to enforce the law in addition to the Justice Department. Republican Sens. Cynthia Lummis of Wyoming, Tim Scott of South Carolina, and John Boozman of Arkansas announced Trump's agreement, stating it includes a "meaningful role" for state attorneys general in enforcing the crypto measure if enacted.
White House officials had privately expressed concerns that granting state attorneys general enforcement power could lead to its use as a political weapon by both Democratic and Republican state lawyers. However, a senior GOP aide indicated that Trump had agreed to approximately 80% of the proposal from Tillis and Gallego, with the state attorneys general provision being a key element. An updated version of the bill expected later Sunday will reportedly require the divestment or placement into a blind trust of any "significant" financial interest in an entity that issues cryptocurrencies. Trump also agreed to language permitting state attorneys general to sue crypto exchanges that list digital assets barred by the overall bill.
Aides for Gallego and Tillis, as well as the White House, did not immediately respond to requests for comment.