Tillis Demands Crypto Ethics Clause in Clarity Act as Trump Ties Stir Debate

Sen. Thom Tillis has drawn a firm line in ongoing negotiations over the Clarity Act, signaling he will oppose the bill unless it includes strict ethics provisions targeting crypto activities tied to federal officials, including the Trump family’s digital asset ventures. The North Carolina Republican’s stance adds new tension to an already complex legislative process, highlighting growing concerns about political figures and cryptocurrency involvement.

Tillis’ position comes shortly after he lifted his hold on Kevin Warsh’s Federal Reserve chair nomination. That move followed the Justice Department’s decision to drop its criminal investigation into current Fed Chair Jerome Powell. Now, Tillis is shifting focus to crypto regulation, becoming the first Republican on the Senate Banking Committee to publicly call for ethics language in the Clarity Act.

The proposed provision would prohibit federal officials, including the president, from sponsoring, issuing, or promoting digital assets. Tillis has aligned with Democratic lawmakers who are pushing for these safeguards, signaling rare bipartisan cooperation on crypto oversight. Senators Adam Schiff and Ruben Gallego are leading negotiations from the Democratic side, while White House crypto adviser Patrick Witt is working alongside Republican Senators Cynthia Lummis and Bernie Moreno to shape the final language.

Lawmakers say discussions are progressing, with both parties narrowing differences as the broader bill takes shape. However, Tillis has made it clear that without the ethics clause, he will shift from a negotiating partner to a firm opponent of the legislation. His stance underscores the challenges facing Congress as it attempts to regulate the fast-evolving cryptocurrency industry.

The debate is further fueled by reports that the Trump family’s crypto-related ventures exceed $1 billion in value. Their involvement includes World Liberty Financial, which launched the USD1 stablecoin and has applied for a federal banking license. Additionally, a Trump-linked entity recently hosted a high-profile event for top holders of the TRUMP meme coin.

With midterm elections approaching, Republicans face a limited window to advance the Clarity Act. Tillis’ conditional support highlights the importance of bipartisan agreement, particularly on ethics in crypto regulation, as lawmakers work to balance innovation with accountability.