President Donald Trump has agreed to major ethics concessions in a bipartisan crypto bill as it heads toward a crucial vote this week, with Republican negotiators saying the move helps secure support from key Democrats and moderates.
The bipartisan crypto bill originally included a ban on issuing digital assets by all federally elected officials, their spouses, and federal judges. A group of Democrats and Sen. Thom Tillis, R-N.C., argued that the measure did not sufficiently address conflict-of-interest concerns tied to Trump’s cryptocurrency holdings, and their votes are expected to be pivotal in Tuesday’s procedural vote.
In response, Tillis and Sen. Ruben Gallego, D-Ariz., pushed to expand enforcement by allowing state attorneys general to help police the law alongside the U.S. Department of Justice. Their proposal became central to negotiations over the bipartisan crypto bill.
Republican Sens. Cynthia Lummis of Wyoming, Tim Scott of South Carolina, and John Boozman of Arkansas announced that Trump agreed to a framework that gives state attorneys general a meaningful enforcement role if the measure becomes law.
Behind the scenes, White House officials had raised concerns about empowering state attorneys general, warning that Democratic state lawyers could use the authority against the president and other Republicans, and that Republican attorneys general could do the same against Democrats, according to people familiar with the talks.
A senior GOP aide, speaking to reporters on background Sunday night, said Trump accepted about 80% of the Tillis-Gallego plan, with the state attorneys general provision as the centerpiece. The updated bill, expected late Sunday, will also require divestment or the use of a blind trust for any significant financial interest in an entity that issues cryptocurrencies, the aide said.
Trump also agreed to language permitting state attorneys general to sue a crypto exchange that lists a digital asset prohibited by the bill, according to the aide.
Representatives for Gallego and Tillis did not immediately respond to requests for comment Sunday night, and the White House did not comment.
Bipartisan crypto bill faces key Senate test
The bipartisan crypto bill is slated for a critical vote Tuesday, where support from both parties will determine whether the package advances. Hawaiʻi investors and fintech firms are watching closely, since federal standards could shape how digital assets are offered and policed across states, including potential enforcement by Hawaiʻi’s attorney general if the bill becomes law.
Hawaiʻi investors and fintech firms are watching closely, since federal standards could shape how digital assets are offered and policed across states, including potential enforcement by Hawaiʻi’s attorney general if the bill becomes law.
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