Senate Republicans update Clarity Act with crypto ethics ban through 2029
Regulation & Gov ·
New text bars the President, Vice President, members of Congress, federal judges and other covered officials—plus spouses—from issuing or profiting from digital assets while in office through January 20, 2029.
Senate Republicans released the revised Clarity Act text after stakeholder briefings, negotiating the ethics package with the White House but without Democrat sign-off, according to wublockchain.xyz. The provision would require covered officials to sell existing crypto holdings or place them in a blind trust, extending the same restrictions to spouses. CNBC reported the measure specifically targets federal officials from issuing digital assets for compensation while serving.
Enforcement would fall to the Department of Justice, which would gain civil enforcement power under the bill, including authority to sue exchanges that list prohibited tokens. Other sections of the legislation remain unchanged from earlier drafts: the BRCA and stablecoin yield provisions still protect non-custodial developers and self-custody rights while barring interest payments on idle stablecoin balances.
The bill also adds a new law-enforcement section providing funding, training and a cyber center focused on nation-state threats, along with freeze-and-seize authority for stablecoin issuers. Bankruptcy provisions are designed to keep customer assets separate from an exchange's estate in the event of insolvency. The Block noted the ethics provisions carry a sunset date tied to 2029, alongside developer protections in the broader software provisions.
Ethics remains the primary unresolved issue as bipartisan talks continue, with the current draft advancing without Democratic support. Six distinct sources have covered the release, underscoring the bill's visibility, but the path to a final bipartisan agreement on the enforcement scope and ethics terms remains open.