US officials barred until 2029 from issuing or sponsoring tokens under CLARITY’s proposed ethics rules

Senate Republicans have released the proposed text of the Digital Asset Market Clarity (CLARITY) Act, which includes ethics provisions that would bar all U.S. federal officials, including President Donald Trump, from issuing or sponsoring any digital asset until January 20, 2029. This date aligns with the expected end of Trump’s second presidential term. The bill also prohibits crypto platforms from listing tokens issued or sponsored by federal officials, and extends the ban to public employees and their spouses. According to Senator Cynthia Lummis, one of the bill’s advocates, these ethics provisions are aimed at addressing concerns about Trump’s anticipated earnings of over $1.4 billion in 2025 from his crypto businesses.

Enforcement of these ethics rules would primarily fall under the U.S. Attorney General rather than state authorities. Todd Blanche, Trump’s former personal attorney and current acting Attorney General, was awaiting Senate confirmation at the time of the bill’s release. Despite these measures, some lawmakers, including Senator Angela Alsobrooks, have expressed concern over reliance on the Department of Justice for enforcement and have indicated a desire to negotiate further to ensure accountability.

The CLARITY Act still requires bipartisan support to meet the 60-vote threshold needed for passage in the Senate. Many Democrats have insisted on strong ethics language to counter what some describe as “crypto corruption” linked to the president before supporting the bill. However, the act's ethics provisions notably do not extend to children of public officials, which is relevant given Trump’s sons’ involvement in several crypto enterprises.

Beyond the ethics rules, the CLARITY Act includes a comprehensive set of measures such as a disclosure regime, rules addressing illicit finance, and improved regulation of spot markets. Solana Policy Institute President Kristin Smith highlighted that the Senate has an opportunity to pass bipartisan legislation that would significantly shape digital asset markets. Senate Majority Leader John Thune was reportedly planning to bring the bill to a vote soon, despite uncertain Democratic support and limited time before upcoming Senate recess.