Crypto Clarity Act still at mercy of ethics section as Democrats balk at Trump deal

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.