Trump Backs Bipartisan Ethics Overhaul in Major Cryptocurrency Legislation Ahead of Crucial Senate Vote

President Donald Trump has consented to a major compromise on strict ethics measures embedded within sweeping cryptocurrency legislation, clearing a substantial hurdle ahead of a decisive Senate vote scheduled for this week. The breakthrough follows intensive bipartisan negotiations aimed at addressing ethics concerns surrounding federal officials and digital asset ownership.

Three primary Republican authors of the comprehensive legislation—Senators Cynthia Lummis of Wyoming, Tim Scott of South Carolina, and John Boozman of Arkansas—announced the president's acceptance of the updated ethics framework. The lawmakers confirmed that the newly agreed-upon provisions will grant state attorneys general a substantial and defined role in enforcing the statute alongside federal authorities.

The broader measure, known as the Clarity Act, has been the subject of protracted congressional debate for more than a year. Lawmakers have sought to create an expansive regulatory structure for the burgeoning digital asset market, but disputes surrounding ethical guardrails for high-ranking government officials had emerged as a principal sticking point in finalizing the text.

In its earlier iteration, the draft bill contained a narrower baseline ethics provision. That initial proposal sought primarily to forbid all federally elected officials, their spouses, and federal judges from directly issuing their own digital assets and cryptocurrencies.

However, that baseline restriction drew sharp resistance from a key bloc of lawmakers whose support remains crucial to the legislation’s passage. A core contingent of Senate Democrats, joined by Republican Senator Thom Tillis of North Carolina, argued forcefully that the baseline ban was too limited to prevent conflicts of interest, specifically pointing to concerns regarding Trump's personal cryptocurrency wealth.

To resolve those concerns, Senator Tillis partnered with Democratic Senator Ruben Gallego of Arizona and other Democratic colleagues to demand broader enforcement powers. Their coalition insisted on structural changes that would permit state-level attorneys general to actively police compliance and initiate legal action, rather than leaving enforcement powers solely in the hands of the federal Department of Justice.

According to a senior Republican congressional aide who briefed reporters on condition of anonymity, President Trump ultimately assented to roughly 80 percent of the ethics package proposed by Tillis and Gallego. The concession primarily centered on incorporating the expanded enforcement authority for state prosecutors that the bipartisan group had insisted upon.

The updated bill includes stringent asset-handling rules for federal officials holding significant ties to the digital finance industry. Under the revised text released on Sunday night, covered individuals with a substantial financial stake in any entity that issues digital currencies will be legally required either to fully divest those holdings or place them into an approved blind trust.

In addition to individual ownership restrictions, the compromise provides state attorneys general with explicit authority to target commercial market intermediaries. Under the new language accepted by Trump, state prosecutors will be empowered to file lawsuits against cryptocurrency exchanges that choose to list or facilitate trading in digital assets barred under the broader legislation.

The president’s agreement to empower state attorneys general marks a notable concession given the significant reservations previously expressed within the executive branch. In private deliberations, White House officials had argued against granting broad enforcement authority to state attorneys general, warning that the power could easily be weaponized for partisan purposes.

Administration aides had privately voiced concerns that Democratic state attorneys general might wield their enforcement authority to target President Trump and other Republican officials. Concurrently, officials worried that Republican state attorneys general could turn identical legal powers against elected Democratic figures, creating an unpredictable and politically charged regulatory environment.

Despite those internal misgivings, the White House publicly shifted to endorse the compromise as a necessary step to secure bipartisan backing. Patrick Witt, the White House crypto adviser, highlighted the administration’s cooperative approach in a statement posted to the social media platform X on Sunday evening.

In his post, Witt emphasized that both Senate Republicans and the White House had consistently engaged with policy requests brought forward by Democratic negotiators throughout the legislative process. Witt underscored that after more than twelve months of extensive negotiations, Congress had reached a moment where the bipartisan Clarity Act should finally be advanced into law.

The concessions were deemed vital to ensuring the measure has sufficient votes to clear an essential procedural test set for Tuesday. Because the legislative balance in the Senate requires cross-party cooperation to overcome procedural thresholds, securing the backing of Tillis, Gallego, and their aligned colleagues was seen by leadership as indispensable.

As the revised legislative text was being finalized and distributed on Sunday night, representatives for Senators Tillis and Gallego did not immediately respond to requests for comment regarding whether the compromise fully satisfied their demands ahead of the upcoming vote.