Blanche Lincoln’s famed derivatives legislation, which would basically prevent any big bank from ever trading CDS again, has already been chastised by Barney Frank. Now, a senior Treasury official has essentially delivered another blow to the Lincoln legislation.

In a briefing for reporters today, Assistant Treasury Secretary Michael Barr said the derivatives rules were not part of the administration’s four “core objectives” for financial reform. Translation: The Lincoln legislation can die a slow death for all we care.

"There are other provisions, like the Lincoln provision, that are not part of that core set of questions and I think those are going to get worked through," Barr told reporters.

He stopped short of explicitly disowning the Lincoln provision, however, when asked whether the administration opposes it. "I think I've laid out pretty clearly what the president's core objectives are," he said.

Both the House and Senate have approved the overall package of financial reform legislation. The two bills will be reconciled in a conference between the two chambers starting in early June. They hope to deliver a final bill to President Obama before July 4.