Trump-Backed Crypto Ethics Clause Triggers Bipartisan Fight Over Who Can Enforce It

BlockBeats reported that on July 22, multiple people familiar with the discussions said a set of crypto ethics provisions signed by former President Donald Trump would bar federal officials—including members of Congress, the President and the Vice President—from issuing digital assets. The draft language would also make the Department of Justice the lead enforcement authority, sidelining state attorneys general. That enforcement structure is emerging as a fresh flashpoint for advancing the CLARITY Act. Democrats have repeatedly pushed to preserve some role for states. Sen. Angela Alsobrooks, a Maryland Democrat and one of the bill's lead negotiators, said earlier Tuesday that she would oppose the legislation if the Justice Department is the sole enforcer: "The Department of Justice enforcing the ethics provisions? That's not a serious proposal. If it's worded this way, I will not support the bill." Alsobrooks' objections are aimed directly at Trump's personal meme coin and his family's firm, World Liberty Financial, according to the sources. The ethics provisions have become the final major hurdle for the CLARITY Act after months of setbacks. White House Senior Advisor for Crypto Affairs Patrick Witt outlined details of the proposed ethics language during an industry conference call Tuesday afternoon. The White House has not confirmed the precise text. In an email, one administration official blamed Senate Democrats for the emerging impasse, saying that if Democrats continue to block what the official called a historic bill after the administration "has gone to great lengths" to address their concerns, the industry should see Democrats as the ones "obstructing progress." Negotiators on both sides are still working off the current version, and it remains unclear whether a deal can be reached before the Senate adjourns.