BlockBeats report: On July 22, according to multiple sources familiar with the matter, the crypto ethics provisions signed by Trump will prohibit federal officials—including members of Congress, the President, and the Vice President—from issuing digital assets, and designate the Department of Justice as the primary enforcement agency rather than state attorneys general. This arrangement may become a new point of contention in advancing the CLARITY Act, as Democrats have consistently argued that states should retain some enforcement authority. Maryland Democratic Senator Angela Alsobrooks, one of the bill’s chief negotiators, stated earlier Tuesday: “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.” Her concerns over enforcement authority directly target Trump’s personal meme coin and his family’s company, World Liberty Financial.
The ethics provisions have been the final hurdle for the CLARITY Act after months of obstacles. White House Senior Advisor for Crypto Affairs Patrick Witt disclosed details of the ethical language during an industry conference call Tuesday afternoon. The White House has not confirmed the exact text, but one official attributed the potential impasse to Democrats in an email: “If Senate Democrats continue to block this historic legislation after the administration has gone to great lengths to accommodate their concerns, industry should recognize that it is Democrats who are obstructing progress, as they have never taken the legislative outcome seriously.” Both sides continue negotiating based on the current version, and it remains uncertain whether an agreement can be reached before the Senate adjourns.