Democrats oppose White House plan to give U.S. attorney general sole authority over crypto restrictions for federal officials.
A bipartisan crypto market structure bill faces delays as Democrats reject the Trump administration’s proposal to task the U.S. attorney general with enforcing ethics rules. The White House has outlined conflict-of-interest limits, including bans on significant crypto holdings for officials, but Democrats insist on allowing state attorneys general to enforce the restrictions instead.
Negotiations center on the Crypto Clarity Act’s most contentious provision—language barring government officials from major crypto ties. Sources say Democrats remain unsatisfied with enforcement details, despite Trump agreeing to broad restrictions for himself, the vice president, and Congress. Industry briefings revealed the White House and Republicans prefer federal oversight, while Democrats push for state-level authority.
The impasse risks derailing the bill’s progress, with the White House warning Democrats could be blamed for further delays. No immediate market reaction was reported, but regulatory uncertainty persists as talks continue.