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. 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. "At every step of the way during the Clarity Act negotiations, the White House and Senate Republicans have been responsive to Democrats’ stated policy objectives," White House crypto adviser Patrick Witt said on X Sunday night. "After more than a year’s worth of negotiations, it’s time to pass this bipartisan bill." Privately, White House representatives had voiced hesitation about granting local prosecutors federal enforcement power.
Officials worried that Democratic state attorneys general might wield the authority as a political tool against the president and other Republican figures, while Republican state attorneys general could turn the same mechanisms against elected Democrats, according to two people familiar with the internal talks. Despite those misgivings, a senior Republican staffer, speaking to journalists on condition of anonymity on Sunday night, confirmed that the president endorsed "about 80%" of the compromise put forward by Tillis and Gallego, pointing directly to the state legal authority provision. The staffer noted that a revised text expected later Sunday will include a mandate requiring officials to divest from, or place into a blind trust, any "significant" financial stake in entities that launch digital currencies.
Additionally, Trump accepted terms permitting state attorneys general to pursue legal action against crypto exchanges if they trade digital tokens banned by the primary text. Spokespersons for Gallego and Tillis did not immediately reply to inquiries on Sunday night. Join thought-provoking conversations, follow other Independent readers and see their replies
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