Trump accepts key ethics restriction on massive crypto bill
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President Trump agreed to a concession that could pave the way for Congress to pass the Clarity Act, a sweeping cryptocurrency bill that has been under debate for much of Trump's second term, per reports Monday.
Why it matters: Senate Democrats have held up the House-passed legislation, arguing that it needs stronger safeguards to prevent Trump and his family from benefiting financially.
- Proponents hope that the compromise will unlock passage of the bill that would create a new regulatory structure for crypto and other digital assets.
The details: The agreement allows for state attorneys general to take enforcement action on violations of the law — not just the Justice Department.
- Another change in the bill would require divestment or a blind trust for officials with a "significant" financial interest in an entity that issues cryptocurrencies, the AP reports.
- Democrats feared that a DOJ under Trump could look the other way on potential breaches of the law by Trump or his allies. The existing text of the bill says that elected officials, their spouses and federal judges are barred from issuing digital tokens.
Zoom out: Trump made $1.2 billion from crypto last year with World Liberty Financial as a key vehicle. The business was co-founded by the president in 2024 with his sons Eric, Donald Jr. and Barron.
What to watch: The Senate is due to hold a key procedural vote for the Clarity Act Tuesday.
The intrigue: This is the only week that the House and Senate are in session before the midterm elections.
- That leaves a small window of time for Congress to act on a number of pressing issues including AI fears, Russia sanctions and a reconciliation bill.
