Trump Accepts Tougher Crypto Ethics Rules as CLARITY Act Faces Senate Test By Matt Brienen Published: 2026-09-14T19:06:30+00:00 ### A New Ethics Compromise Emerges President Donald Trump has accepted a substantial portion of a revised ethics proposal tied to the Digital Asset Market CLARITY Act, according to Republican lawmakers involved in the negotiations. The compromise addresses one of the most significant political obstacles facing the wider crypto market structure bill. The revised proposal would require covered officials to divest or place in a qualified blind trust any significant financial interest in an entity that issues digital assets. It would also give state attorneys general a meaningful enforcement role alongside the U.S. Department of Justice. A senior Republican aide characterized Trump’s acceptance as covering about 80% of a proposal developed by Republican Senator Thom Tillis and Democratic Senator Ruben Gallego. The restrictions are proposals contained in legislation, not rules currently in force. --- ### What the Revised Provision Would Do An earlier version of the bill would have prohibited federally elected officials, their spouses and federal judges from issuing or sponsoring digital assets. That language was designed to prevent officials from launching products such as personal memecoins while holding public office. Critics argued that an issuance ban did not adequately address existing ownership interests or income derived through crypto businesses. The Tillis-Gallego proposal attempted to go further by addressing significant financial interests in entities that issue digital assets. Under the revised approach, a covered interest could trigger a requirement to divest or move the holding into a qualified blind trust. The exact application would depend on the definitions, thresholds and implementation language contained in the final bill. The proposal would also allow state attorneys general to participate in enforcement. That point was especially important to lawmakers who argued that relying exclusively on a president’s own Justice Department would create an obvious enforcement concern. --- ### Trump’s Crypto Interests Drive the Debate The ethics fight has been shaped by Trump’s connections to several digital asset ventures. Those include the memecoin launched shortly before his second inauguration and World Liberty Financial, a crypto business associated with members of his family. The central policy question is whether elected officials should be able to influence digital asset regulation while retaining substantial financial exposure to businesses that could benefit from those decisions. Supporters of stronger restrictions say the issue extends beyond one president and should be addressed through rules that apply consistently across government. The revised language reportedly covers federally elected officials and their spouses as well as federal judges. Trump also accepted a provision allowing state attorneys general to bring action against a crypto exchange that lists an asset prohibited under the legislation. --- ### The Bill Still Faces a Political Test The compromise does not guarantee passage. The CLARITY Act still needs enough support to overcome the Senate’s procedural threshold, and lawmakers may disagree about whether the latest ethics language closes the most important loopholes. Gallego, Tillis and other senators who pushed for the additional restrictions had not immediately endorsed the final compromise when its details emerged. That leaves open the question of whether the language accepted by Trump is strong enough to secure the votes needed to advance the bill. Other parts of the legislation also remain consequential. The wider bill is intended to establish clearer regulatory responsibilities for U.S. digital asset markets, including the roles of the Securities and Exchange Commission and the Commodity Futures Trading Commission. Lawmakers have additionally debated stablecoin rewards, banking risks, decentralized finance, exchange conflicts and law-enforcement protections. --- ### Why the Outcome Matters for Crypto The market structure debate could determine how digital assets are issued, traded and supervised in the United States. Clearer jurisdiction could reduce uncertainty for legitimate businesses, but the durability of any framework will depend heavily on public trust. That is why the ethics provision has become more than a side issue. A regulatory framework may struggle to maintain credibility if the officials responsible for shaping it can hold major interests in the same industry. Trump’s latest concession moves negotiations forward by accepting stronger ownership restrictions and a role for state-level enforcement. The Senate vote will show whether that compromise is enough to bridge the remaining political divide or whether conflict-of-interest concerns continue to hold up one of the most consequential U.S. crypto bills in years.