Quick Take
- The ethics language signed on by President Trump would put the DOJ as the chief enforcer of the provision, not state attorneys general, which could become a flashpoint since Democrats have argued for states to have some control.
- Ethics has been the final hurdle, after many, in getting sweeping crypto legislation, called the Clarity Act, passed into law.
Newly approved ethics language signed by President Donald Trump would prohibit federal officials from issuing cryptocurrencies, and would put the Justice Department in charge of enforcing it, not states, which could become a sore spot in trying to pass broader cryptocurrency legislation.
Talk of the ethics language came out during an industry call on Tuesday afternoon with White House top crypto adviser Patrick Witt.
The language would prohibit federal officials such as members of Congress, the president and vice president from issuing digital assets, three sources told The Block on Tuesday. The language also would put the Justice Department as the chief enforcer of the provision, not state attorneys general, which could become a flashpoint since Democrats have argued for states to have some control, two of the sources confirmed.
Crypto In America's Eleanor Terrett and The Hill's Julia Shapero also reported details on the ethics provision.
Late on Monday, Trump agreed to ethics language following months of negotiations among lawmakers over how to limit presidents, vice presidents, members of Congress and other federal officials from profiting from digital assets while in office. Ethics has been the final hurdle, after many, in getting sweeping crypto legislation, called the Clarity Act, passed into law.
Earlier in the day on Tuesday, Sen. Angela Alsobrooks, D-Md., and one of the main negotiators of the Clarity Act, said she had concerns over who would enforce the ethics provision. At issue are Trump‘s memecoins and his family’s company, World Liberty Financial. Financial disclosures released last month showed that Trump received millions of dollars tied to WLF, intensifying debate over ethics safeguards.
“This DOJ enforcing an ethics provision？ That's an unserious offer, and I wouldn't support the bill if that's the language. But we'll keep working from that floor to reach an agreement that holds us all accountable,” Alsobrooks said in a statement to The Block.
The White House did not confirm wording in the ethics provision, but said it was working with lawmakers to pass the Clarity Act into law and blamed Democrats if the bill does not pass.
“If Senate Democrats block this historic legislation after the administration has bent over backward to accommodate their concerns, stakeholders should make no mistake: it is the Democrats who are blocking this legislation because they were never serious about a legislative outcome,” a White House official said in an email.