The Trump administration in recent weeks has pressured current and former US law enforcement officials to help corral support for a milestone cryptocurrency law that critics say could be exploited by narcotraffickers, terrorists, and other criminal groups, according to multiple people briefed on the matter.
The pressure comes as the legislation has faced headwinds in the Senate, including from lawmakers who say it allows President Donald Trump to continue to benefit from his cryptocurrency earnings while in office.
The campaign on law enforcement groups is part of a broad push led by White House officials, Republican lawmakers and acting Attorney General Todd Blanche to rebut concerns raised about parts of the proposed Clarity Act.
The administration and cryptocurrency industry groups say, if passed, the law would bring regulatory certainty to the digital currency industry and ensure the sharing of information about illicit activity with law enforcement. At the urging of Democrats, the White House agreed to new ethics provisions that ban government officials, including Trump, from issuing new digital currency.
Some critics, though, are focused on a part of the bill that allows Trump to keep benefiting from his cryptocurrency ventures, including $TRUMP memecoin, which was launched days before he took office. The proposed legislation wouldn’t prohibit those earnings. Those lawmakers also say the bill includes “loopholes” that leave room for Trump to enter new ventures and does not include an enforcement mechanism if he is found to be in violation in the restrictions that are included in the legislation.
