Congress
Crypto bill ethics counteroffer includes divestment requirement for Trump
A bipartisan counteroffer for ethics language in a major cryptocurrency bill would force President Donald Trump and other federal officials to divest any ownership stake in a digital asset company if it is worth more than $1 million and represents 10 percent or more of the firm’s value, according to three people with knowledge of the language who were granted anonymity to discuss private negotiations.
The restriction applies to ownership stakes in firms that obtain most of their revenue from issuance or sponsorship of digital assets, the people said.
The offer for ethics language in the crypto bill was sent to the White House last week by Sens. Thom Tillis (R-N.C.) and Ruben Gallego (D-Ariz.). Democrats, who rejected a previous White House-blessed GOP ethics proposal, are demanding the provision be in the bill to address concerns about the Trump family’s crypto businesses. It is unclear how exactly the language would apply to Trump, but it could require him to divest from World Liberty Financial, the crypto firm he launched with his sons.
The ethics language in the bill, known as the Clarity Act, remains the subject of ongoing discussions. Tillis told reporters Thursday afternoon that his office has had “discussions” with the White House, “but there’s no exchange of paper” so far.
The counteroffer would allow state attorneys general to sue the Justice Department for not enforcing the ethics requirements. It would also allow state AGs to sue crypto exchanges for listing assets that are in violation of the ethics requirements.
The state AG authorities have been a major sticking point in the ethics talks. Democrats say they don’t trust the Trump Justice Department to enforce any ethics rules, but Republicans have pushed back on proposals to create a role for state AGs, saying they could use the language to go after politicians in the opposite party.
Gallego said in a statement that “this sensible, bipartisan ethics deal ends Trump’s crypto grift by requiring him to divest and stops him from making one dollar more from his rug pulls.”
“If these provisions were law before Trump got into office, they would have prevented the $1.4 billion in corrupt earnings he’s made this term,” he said.
Tillis said in a statement that he has “made it clear” that he “will be voting to get on the Clarity Act but won’t support final passage without a bipartisan ethics agreement.”
“We have worked on a fair proposal that directly addresses the legitimate concerns of both Republicans and Democrats, including enforcing the law and preventing state attorneys general from abusing litigation for partisan purposes,” he said.
The White House did not immediately respond to a request for comment Thursday evening.
Republican supporters of the crypto bill have been hoping to hold an initial procedural vote on it before the Senate departs for its August recess, but GOP leaders are not currently expecting to take it up before leaving. The ethics fight is the biggest sticking point in bipartisan talks, though other outstanding policy issues also remain. The legislation needs bipartisan backing to advance.
The ethics counterproposal transmitted last week would also cover federal officials who have stakes in crypto firms that are less than $1 million. It would require any official who has an ownership stake of more than $15,000 to place those holdings in a blind trust or divest.
The ethics requirements would take effect one year after the bill is enacted into law. Officials would have six months after that to comply with the divestment requirement.
Bloomberg previously reported that the divestment proposal could let Trump take advantage of a tax break that allows federal officials who divest from certain assets to put off paying capital gains tax.
Democrats could pick up a once-unthinkable nine Senate seats by the time votes are fully counted from Tuesday’s midterms. Chuck Schumer says he’s just getting started.
The triumphant Senate Democratic leader sat in his Capitol office Thursday and described a “long-term effort” to build on his party’s gains and create a “durable” majority — largely by proving to voters “that we really can get things done.”
“We’re going to keep building. We’re going to build over the next two years first by passing things, or at least fighting hard for things that people want, and we know they want,” he said, adding, “If we do that, we can expand the map.”
It’s a pledge that gained immense new credibility Tuesday when Democrats defied warnings about the unfavorable 2026 Senate map and picked up seats in several states President Donald Trump won two years earlier. Democratic candidates are also ahead in the two uncalled races, in Alaska and Mississippi.
Now Schumer is on track to keep his leadership post and plot his party’s effort to exploit an even more advantageous lineup of races in 2028.
Democrats will need to hold on to their newly-won seat in Ohio, and they also have to defend seats in traditional swing states like Arizona, Colorado, Georgia and Nevada. But Republicans have several vulnerabilities of their own — including seats in Wisconsin, which just elected an all-Democratic state government; North Carolina, which just saw its GOP-majority congressional delegation decimated; and in other states Democrats just won including Iowa, Kansas and South Carolina.
But to make good on his dreams of expansion, Schumer must unite and effectively manage the various factions within his caucus over the next two years. Complicating that job will be the looming free-for-all presidential primary that could involve several of his members — not to mention Schumer’s own 2028 reelection decision.
Had Democrats had a bad night Tuesday, Schumer could have faced an early test in securing another term as leader — with some progressives groups eager to force a conversation about new blood in the top ranks.
Some incoming Democratic freshmen have vowed not to back Schumer as leader, and Sen. Chris Van Hollen of Maryland, who is eyeing a 2028 White House bid, wants to have conversations about the majority’s legislative agenda before Democrats hold a leadership election, which is expected in early December.
“The Democratic caucus needs to have a discussion about what we should do with this new responsibility that has been entrusted with us, and we should have a full and honest discussion in our caucus about what the plan is, what direction we want to go in,” Van Hollen said in an interview.
But the electoral romp has extinguished any serious discussion of making a change at the top, with many Democrats saying Schumer richly earned another two years in charge.
“Trust me, had the results turned out differently, we would be saying it was a result of disastrous leadership,” Sen. Angela Alsobrooks (D-Md.) said in an interview. “So if it works to our favor, then I think we have a right to say that it was a result of some things that went well.”
For his part, Schumer has moved to downplay any suggestion of tension within his suddenly much more ideologically and geographically diverse caucus. In the interview, he noted his friendly relations with both hard-left firebrand Abdul El-Sayed — one of the freshmen who say they want a new leader — and moderate Methodist pastor Adam Hamilton in Kansas.
“The media wants to make it, ‘This is going to be a fight,’” Schumer said. “It’s not. I speak to all these candidates. I speak to Abdul all the time. I speak to Hamilton all the time. We’re on the same page.”
While red-state Democrats had become all but extinct in the Senate over the past decade, Schumer is not a stranger to managing ideological tensions in his ranks. During his first stint as majority leader under then-President Joe Biden, he presided over a threadbare 50-seat majority where maverick Sens. Joe Manchin of West Virginia and Kyrsten Sinema of Arizona frequently frustrated the remainder of the caucus.
Schumer said he views his incoming red-state Democrats differently than those predecessors, saying they ran on the same platform as his members in deep-blue coastal states.
“When they ran, they each ran individually, on their own,” he said, referring to the likes of Manchin and Sinema. “We have from one end of the country to the other the message of cost, chaos, and corruption.”
Schumer pointed to the host of policy proposals that Democrats have rolled out over the past two years as a roadmap for the Senate’s upcoming legislative agenda, broadly addressing topics including housing, health care and energy. Still — even if Democrats run the table in the remaining races — they will be short of the 60-vote filibuster threshold necessary for advancing most bills.
While he said Democrats are “going to do everything we can to pass legislation,” Schumer would not directly address how to get bills to Trump’s desk. He batted down questions over whether Democrats should pursue the party-line reconciliation process or carve up the chamber’s legislative filibuster even if the bills they pass have no chance of getting signed into law.
He did issue a warning to Republicans about any potential obstruction — and took a shot at Trump, whom he has yet to speak to following the election.
“We’re not going to wait for Trump,” Schumer said. “Who knows what the hell he’ll do? But we’re going to put solutions on the table.”
And if Republican senators “stand in the way,” he added, “I think the election of 2028 will make 2026 look tame because they’re so out of touch with the American people.”
The ultimate goal, he said, is to take action on critical matters and show voters what a red-state Democrat might look like versus what “they’re told about what Democrats are [on] Fox News.”
After successfully wooing candidates like former North Carolina Gov. Roy Cooper and former Ohio Sen. Sherrod Brown into winning 2026 races, Schumer said he hasn’t started recruiting for 2028, but that he believes Democrats now have footholds that will make winning in red states easier.
“I’ve spent decades working to change the Senate map,” he said. “This is a real, unique opportunity, planned out, and now we’ve got to make sure it lasts.”
Calen Razor and Lauren Fedor contributed to this report.
Rep. Ted Lieu of California announced a run for House Democratic Caucus chair in a letter to colleagues Thursday.
“I am now running for Chair of the Caucus because I want to work with all of you to seize the opportunity the American people just gave us,” he said. “If we do this right, we can build an enduring majority, one that will win not just the next one or two election cycles, but many more.”
Lieu now serves as caucus vice chair, and is currently running unopposed for a higher leadership slot in the new House Democratic majority. If he wins, he would be the highest-ranking Asian American House member ever.
Senate conservatives are pushing to delay internal leadership elections, which are expected to go forward as scheduled on Tuesday.
Sen. Ron Johnson (R-Wis.) said Thursday he is collecting signatures to send a letter to leadership calling for a conference meeting before Senate Republicans move forward with their closed-door leadership election.
“We need to delay that. We need a robust discussion – I always call them a post-morteum – of what happened. You just can’t ‘oh, let’s elect this leadership team by acclimation.’ That’s unacceptable,” Johnson told The Clay & Buck Show.
Under Senate rules, five GOP senators can force a special conference meeting by submitting a formal request in writing. Sen. Mike Lee (R-Utah), a frequent Johnson ally, agreed with him in a social media post and said that he would be signing Johnson’s letter.
“We have no business holding Senate Republican leadership elections until: (1) we’ve had ample opportunity to discuss what happened on Tuesday, and (2) we know who’s going to be in our conference,” Lee wrote.
It’s not the first time Johnson has used the Senate GOP’s rules to force a conference-wide meeting. And Senate Republicans also defeated calls in 2022 to delay their leadership election.
Republican senators and aides said Thursday they don’t currently expect their leadership election to be delayed past Tuesday. Republicans could also technically slot a conference meeting into the schedule before leadership elections.
Johnson acknowledged his uphill climb adding: “I don’t know that I’ll be able to stop this vote.”
The push to delay the leadership election comes as Senate Majority Leader John Thune is running for a second term in the party’s top spot, where he would lead the conference in the minority come January.
No Republican senator has said they will oppose Thune and no one has raised their hand to challenge him, with GOP senators widely expecting him to keep the job.
Johnson appeared to acknowledge that Thune would be leader. Asked if he was going to get a challenge, Johnson asked: “Who would want the job?”
-
Politics1 year agoJohn Legend advises Trump to drop the ‘dictator s‑‑‑’ if he wants Nobel Peace Prize
-
Politics2 years agoFormer ‘Squad’ members launching ‘Bowman and Bush’ YouTube show
-
Uncategorized2 years ago
Bob Good to step down as Freedom Caucus chair this week
-
The Josh Fourrier Show2 years agoDOOMSDAY: Trump won, now what?
-
The Dictatorship2 years agoPete Hegseth’s tenure at the Pentagon goes from bad to worse
-
Politics2 years agoFormer Kentucky AG Daniel Cameron launches Senate bid
-
The Dictatorship2 years agoLuigi Mangione acknowledges public support in first official statement since arrest
-
Politics2 years agoBlue Light News’s Editorial Director Ryan Hutchins speaks at Blue Light News’s 2025 Governors Summit