Trump Makes Major Crypto Ethics Concession Before Crypto Senate Vote

President Donald Trump has backed significant new ethics restrictions that would be added to a major cryptocurrency bill ahead of a pivotal Senate vote, Republican lawmakers involved in negotiations said Sunday.

The agreement addresses concerns from a group of Democrats and Republican Sen. Thom Tillis of North Carolina, who argued that the bill’s original ethics provisions did not go far enough to address potential conflicts of interest involving Trump and his crypto-related financial interests.

The legislation is expected to face a key procedural vote Tuesday, with support from Tillis and several Democrats considered important to moving it forward.

State Attorneys General Could Gain Enforcement Power

The original version of the bill included a provision preventing federally elected officials, their spouses and federal judges from issuing digital assets.

Tillis, Sen. Ruben Gallego of Arizona and other lawmakers pushed for broader safeguards, including giving state attorneys general authority to enforce the proposed restrictions alongside the Justice Department.

Republican Sens. Cynthia Lummis of Wyoming, Tim Scott of South Carolina and John Boozman of Arkansas said Trump had agreed to give state attorneys general a meaningful role in enforcing the measure if it becomes law.

The provision had reportedly faced resistance within the White House. Officials raised concerns that state-level enforcement could expose the president and other Republican officials to politically motivated lawsuits, while also potentially allowing Republican attorneys general to target Democratic officials.

A senior Republican congressional aide said Trump had accepted roughly 80% of the proposal put forward by Tillis and Gallego, with the state enforcement mechanism representing one of its central components.

New Restrictions on Crypto Holdings

The revised legislation is also expected to introduce additional restrictions on lawmakers and other officials with substantial financial exposure to cryptocurrency issuers.

Under the proposed language, individuals covered by the provision would have to either divest significant financial interests in cryptocurrency-issuing companies or place those holdings into a blind trust.

The change would expand the bill beyond its initial restrictions on the issuance of digital assets and introduce requirements addressing financial interests tied to companies operating in the crypto sector.

The legislation would also allow state attorneys general to bring legal action against a cryptocurrency exchange if it lists a digital asset that would be prohibited under the broader measure.

The provisions are particularly significant given the president's extensive financial ties to the cryptocurrency industry, which have become a point of contention during negotiations over the bill.

Crypto Bill Heads Toward Critical Vote

The ethics provisions have emerged as one of the most politically sensitive elements of the broader cryptocurrency legislation.

For Democrats backing the changes and Tillis, the issue centers on whether the bill can establish meaningful safeguards against conflicts of interest involving government officials while regulating a rapidly expanding digital asset industry.

The revised Trump crypto bill was expected to be released Sunday night ahead of Tuesday’s vote.

Representatives for Gallego and Tillis, as well as the White House, had not immediately commented on the reported agreement.

The negotiations could prove decisive for the legislation, with the ethics provisions now serving as a key test of whether lawmakers can secure enough bipartisan support to move the broader crypto framework through the Senate.