coindesk.com
U.S. Senate Democrats are said to be unhappy with some of the details emerging about the crypto market structure bill's most contentious section: the language that will ban government officials from significant crypto ties.
The deepest current point of disagreement is who will enforce the ban, according to people familiar with a crypto industry briefing delivered Tuesday from a White House official. The industry insiders were told that the Democrats have held tight to their preference that state attorneys general be able to enforce the ethics restrictions on federal officials, while the White House and Republicans behind the bill are insisting on the U.S. attorney general as the top authority.
The Digital Asset Market Clarity Act's advancement has come to depend on a compromise on this ethics restriction for government officials, which sources say would include the president, vice president and all members of Congress. If they can work out a compromise on that point, the rest of the bill is expected to move forward, despite a few loose ends in other areas, such as the treatment of developers in the bill's illicit-finance safeguards.
August 7 — the fast-approaching final day before the Senate's summer recess — is seen as a major deadline for finishing the Clarity Act this year. Crypto insiders are expecting the bill to get to the floor as soon as the beginning of next week, which would fit with what Senate Majority Leader John Thune had previously indicated. The legislation could require several days to get to a final vote.
Earlier on Tuesday, CoinDesk had reported that a White House official said Trump agreed to "the most comprehensive and wide-ranging ethics provision in history," though the actual language he's accepted hadn't yet been shared with Democrats. As of press time, it was still unclear if Democrats had seen the exact language. Still, the administration argued that it had "bent over backward" to satisfy Democrats, suggesting it would be their fault if the legislation doesn't advance.
Trump's agreement to a crypto constraint of his own business ties raises significant questions about how his involvement would be made sufficiently remote to comply with the limit. The president and his family are deeply connected to several crypto business initiatives, including their ownership stake in World Liberty Financial. While Trump has insisted he's not conflicted as his administration imposes crypto policies that affect his own businesses, Democratic lawmakers have openly accused him of corruption.