Trump caves to tougher ethics crackdown as his crypto fortune faces scrutiny

President Donald Trump has agreed to a major share of a strict ethics proposal embedded within a broader cryptocurrency bill set for a critical Senate vote this week, according to three key Republican sponsors.

The broad legislative proposal initially contained a single restriction that would prohibit all federally elected representatives, their spouses, and federal judges from creating or issuing digital assets.

However, a pivotal coalition of Democrats, together with Sen. Thom Tillis, R-N.C., argued that the initial terms were insufficient to manage potential conflicts of interest surrounding Trump’s cryptocurrency holdings. The group's backing is necessary to clear a crucial procedural threshold in Tuesday's scheduled vote.

Tillis and Sen. Ruben Gallego, D-Ariz., along with multiple Democratic senators, called for specific statutory language authorizing state attorneys general to enforce the legislation alongside the federal Justice Department.

In confirming Trump’s concurrence, Republican Sens. Cynthia Lummis of Wyoming, Tim Scott of South Carolina and John Boozman of Arkansas said state legal officers would have a "meaningful role" in upholding the cryptocurrency oversight rules if the bill is signed into law.