Trump Endorses Crypto Ethics Provision: Prohibits Federal Officials from Issuing Cryptocurrency, with the U.S. Department of Justice as the Lead Enforcement Agency

BlockBeats News, July 22nd — According to multiple sources familiar with the matter, the crypto ethics provision signed by Trump will prohibit federal officials, including members of Congress, the President, and the Vice President, from issuing digital assets. It will also designate the Department of Justice as the primary enforcement agency for this provision instead of state attorneys general. This arrangement could become a new point of contention in advancing the "CLARITY Act" — the Democratic Party has always argued that each state should have a certain enforcement authority. Maryland Democratic Senator and one of the key negotiators of the bill, Angela Alsobrooks, stated earlier on Tuesday: "The Department of Justice to enforce the ethics provision? This is not a serious proposal. If that's the wording, I will not support the bill." Her concerns about enforcement powers directly target Trump's personal Meme coin and his family company, World Liberty Financial.

The ethics provision has been the final hurdle for the "CLARITY Act" after facing numerous obstacles for months. White House Senior Cryptocurrency Advisor Patrick Witt revealed the details of the ethics provision in an industry conference call on Tuesday afternoon. The White House has not confirmed the specific text, but an official attributed the potential deadlock to the Democrats in an email: "If Senate Democrats continue to block this historic legislation after the government has done everything possible to accommodate their concerns, the industry should recognize that it is the Democrats who are obstructing the progress of the bill because they have never taken the legislative outcomes seriously." Currently, both sides are continuing negotiations based on the current version, and whether they can reach a consensus before the Senate recess remains unknown.