Senate Republicans have released a revised version of CLARITY Act that would temporarily restrict senior federal officials and their spouses from launching or promoting digital assets for compensation while in office.
Updated CLARITY Act Released with Ethics Provisions, Temporary Trump Crypto Ban
22 July 2026 - 22:09 CEST
By Matt Neill
The ethics provisions seek to address concerns over officials using public office to profit from crypto ventures. They form part of a broader 616-page market-structure proposal that would expand federal oversight of digital commodity exchanges, brokers, dealers and custodians.
How those provisions get enforced may prove an obstacle to passage. The revision gives the Justice Department exclusive authority to bring civil cases, barring state attorneys general and private parties from suing. That means any enforcement action against a sitting president or administration official would depend on the president's own Justice Department.
Democratic Senator Angela Alsobrooks of Maryland recently dismissed the proposal to have the Justice Department enforce the ethics provisions as insufficient, telling Sandmark that she would not support the bill if that language remains. Her backing was crucial to the bill's bipartisan advance in May, when she was one of only two Democrats to vote with Republicans to move the CLARITY Act through the Senate Banking Committee.
US President Donald Trump reported more than $1.4bn in income from his family's crypto ventures in 2025, including almost $800mn from World Liberty Financial and $635mn from memecoin sales. Those earnings have intensified scrutiny over whether serving officials should profit from digital assets while influencing the rules governing them.
If enacted in its current form, the ethics provisions could prohibit Trump and other senior federal officials from financially benefiting from crypto ventures while in office, potentially requiring changes to how the president's crypto businesses operate or distribute revenue. The proposal would not automatically ban the businesses themselves, and any impact would depend on its final language and how it is implemented.
The ethics restrictions, however, would expire at noon on 20 Jan 2029 when the next presidential term begins, unless Congress votes to extend them. In practical terms, the ban would apply only during the remainder of the Trump administration rather than becoming a permanent federal ethics standard.
The bill still needs support from at least seven Democrats to reach the 60 votes required to advance in the Senate, but whether the revised ethics provisions will be enough to secure that backing remains uncertain.
Ethics rules target paid token ventures
The revised bill, published on 22 Jul, would prohibit covered public officials, employees and their spouses from issuing or sponsoring a digital asset "in exchange for consideration" during their time in office.
The restrictions would cover the president, vice president and other federal officials included under existing ethics definitions. Issuing an asset would include creating, minting, launching or controlling its initial sale or distribution.
The bill defines sponsorship broadly. It would include funding, organizing or publicly endorsing a token, as well as allowing an official's name, image, likeness or position to be used in its creation or promotion. Digital asset intermediaries would be prohibited from listing tokens issued or sponsored in violation of the provision.
It would not impose a general ban on crypto ownership. Covered officials could continue holding digital assets as investments, subject to existing disclosure and conflict-of-interest requirements.
Democratic support remains uncertain
The Senate Banking Committee advanced an earlier version of the CLARITY Act by 15 votes to nine in May, with bipartisan support. The revised text combines work from the Banking and Agriculture committees.
Republican Senator Cynthia Lummis said in a statement that Democratic lawmakers had contributed to the draft but indicated that negotiations were continuing.
"I want to thank my Democratic colleagues for their important contributions to this draft, and express my commitment to reaching a deal in the coming days that will allow this legislation to become law," she said.
The ethics language moves the bill closer to addressing conflicts between public office and private crypto interests. Its limited duration and reliance on the Justice Department for enforcement may still shape negotiations.
The updated draft advances the wider effort to establish US crypto market rules. It does not yet establish that the bill has the bipartisan support required to complete the legislative process, which would include clearing the full Senate, resolving differences with the version passed by the House and winning final approval in both chambers before reaching Trump's desk.
Time is running short. The Senate is scheduled to begin a five-week recess on 10 Aug, and lawmakers will return in mid-September with fewer working days before the November midterm elections and with campaigning likely to compete with unfinished legislation for attention during that time.
