Trump Backs New Ethics Rules in Comprehensive Cryptocurrency Bill Ahead of Senate Vote

In a significant policy shift aimed at unblocking sweeping digital asset legislation, President Donald Trump has agreed to key bipartisan ethics provisions designed to curb conflicts of interest among high-ranking federal officials. The breakthrough comes immediately ahead of a decisive Senate vote scheduled for this week, according to Republican authors of the measure.

The agreement was announced by Republican Senators Cynthia Lummis of Wyoming, Tim Scott of South Carolina, and John Boozman of Arkansas, three of the primary architects behind the broader regulatory package. The lawmakers confirmed that the updated statutory text will incorporate a "meaningful role" for state attorneys general to enforce the measure alongside federal authorities should the legislation be signed into law.

Securing the president's backing was considered critical for assembling the bipartisan coalition necessary to clear a pivotal procedural hurdle on Tuesday. Senate leadership required support from a core faction of Democrats as well as Republican Senator Thom Tillis of North Carolina, both of whom had withheld their backing over ethics and oversight concerns regarding government officials in the cryptocurrency sector.

Under its initial formulation, the sweeping legislation contained a relatively narrow restriction that only prohibited federally elected officials, their spouses, and federal judges from directly issuing digital assets. However, critics argued that this initial baseline did not go far enough to prevent ethical entanglements across the federal government.

Tillis and Senator Ruben Gallego, an Arizona Democrat, joined with several other Democratic lawmakers to demand more stringent guardrails. They argued that the earlier draft failed to sufficiently address potential conflict-of-interest concerns regarding Trump's personal cryptocurrency holdings and financial ventures.

To address these concerns, Tillis and Gallego pressed for expanded enforcement mechanisms, specifically demanding language that would permit state attorneys general to step in and enforce the rules in tandem with the Department of Justice.

According to a senior Republican aide who briefed reporters on condition of anonymity Sunday night, the president agreed to roughly 80% of the framework put forward by Tillis and Gallego. The compromise cleared the path for an updated version of the legislation to be released to the public ahead of the scheduled vote.

Among the central requirements included in the revised language is a mandate directing covered officials to either divest or place into a blind trust any "significant" financial interest in entities that issue digital currencies. This provision aims to prevent public servants from holding stakes that could directly benefit from federal regulatory decisions.

The compromise also broadens the enforcement scope by empowering state attorneys general to take direct legal action against trading platforms. Under the revised terms, state prosecutors will have the authority to sue cryptocurrency exchanges if those platforms list digital assets that are explicitly barred under the broader legislation.

The inclusion of state-level enforcement represents a major concession by the executive branch. In private discussions, White House officials had voiced notable concerns about granting state attorneys general the power to enforce the statute independently.

According to two individuals with knowledge of internal deliberations, administration officials argued that giving state prosecutors enforcement power could turn the measure into a political weapon. Aides warned that Democratic attorneys general might use the provisions to target the president and Republican officeholders, while also acknowledging that Republican state lawyers could similarly target elected Democrats.

Despite those private reservations, the administration moved to support the compromise in an effort to advance the broader regulatory bill. White House cryptocurrency adviser Patrick Witt took to the social media platform X on Sunday night to highlight the administration's cooperative efforts throughout the protracted drafting process.

Witt emphasized that throughout the negotiations over the measure, known as the Clarity Act, both the White House and Senate Republicans had remained responsive to Democratic policy priorities. He noted that after more than a year of intensive discussions, the time had come for Congress to pass the bipartisan package.

The final push for the legislation played out as Trump traveled back to Washington, having spoken with reporters aboard Air Force One during a flight from Shannon, Ireland, to Joint Base Andrews in Maryland.

Representatives for Tillis and Gallego did not immediately return requests for comment on Sunday night regarding the final language. Lawmakers are now preparing to take up the updated measure on Tuesday, where the compromised ethics provisions will face their first major legislative test on the Senate floor.