President Donald Trump agreed to proposed ethics restrictions applying to his cryptocurrency activities as senators worked to secure support for the Digital Asset Market Clarity Act. A pivotal Senate vote scheduled for Tuesday could determine whether the legislation advances, with lawmakers divided over whether the proposed restrictions go far enough.
The dispute has complicated efforts to enact broad rules for the $2.3 trillion digital asset market. Trump has accumulated significant cryptocurrency wealth while in office, and key senators have sought conflict-of-interest provisions addressing the president’s holdings and his involvement with digital assets.
Sen. Cynthia Lummis, R-Wyo., the bill’s lead author, and Sen. Bernie Moreno, R-Ohio, met with Trump at the White House in mid-July and told him that restrictions applying to him would be needed to gain support from key Democrats. Trump agreed with little pushback, according to two people with knowledge of the private Oval Office discussion who spoke to The Associated Press on condition of anonymity.
The language presented by Lummis and Moreno would prohibit all federally elected officials and their spouses, as well as federal judges, from issuing digital assets. The restriction would prevent Trump from sponsoring the type of meme coin he launched shortly before his second inauguration in January and would also apply to first lady Melania Trump, who has a token.
Sen. Ruben Gallego, D-Ariz., and Sen. Thom Tillis, R-N.C., later advanced a stricter proposal requiring the president to place cryptocurrency holdings in a blind trust and divest when the holdings reach a specified value. Two people with direct knowledge of that language, speaking anonymously about private negotiations, described the provision to the AP. Republicans said late Sunday that Trump had consented to the tougher proposal.
The outstanding question is whether Trump’s agreements will satisfy enough senators to move the bill forward. Lummis argued that the legislation would impose meaningful limits, telling the AP: “A vote against the Clarity Act isn’t a principled stand against President Trump. It’s a vote against implementing tough restrictions on politicians for crypto investments.”