Senate draft of Clarity Act adds ethics limits on Trump crypto activity, set to lapse in 2029
Regulation & Gov ·
A newly circulated version of the market-structure bill would restrict the president and other officials from launching digital-asset ventures while in office, but only until January 20, 2029.
The 616-page text, now moving through the Senate, would prohibit public officials, employees and their spouses from issuing or promoting cryptocurrency during their time in government, according to Decrypt. Officials would still be permitted to hold crypto investments personally, and the restriction does not reach the adult children of officials — meaning Donald Trump Jr. and Eric Trump, who are tied to World Liberty Financial, fall outside its scope. Oversight of the rule would sit exclusively with the Department of Justice, and the provision is written to automatically stop applying at noon on the day the current presidential term ends in 2029.
The measure is a direct response to scrutiny of Trump's meme-coin projects and World Liberty Financial, after disclosures showed he collected more than $1.2 billion from crypto-related activity last year. Senator Elizabeth Warren has pushed for a broader prohibition covering the president, vice president, senior officials, lawmakers and their relatives from profiting off digital assets, a standard this draft does not fully meet.
Because the ethics language expires on a fixed date, relies on a single enforcement agency, and exempts officials' children, it is expected to face pushback from Democrats whose votes are needed to advance the bill — the legislation requires 60 votes in the Senate, meaning at least 10 Democratic votes on top of Republican support. A separate item in the same cluster describes the administration as having agreed to include an ethics provision at all, framed as progress toward clearer SEC and CFTC jurisdiction over digital assets ahead of the August recess.
The draft also keeps intact the Blockchain Regulatory Certainty Act, which shields non-custodial software developers from being classified as money transmitters, a status that would otherwise trigger compliance requirements. Industry groups have treated that safe harbor as essential to keeping development activity inside the United States, following past DOJ prosecutions in the space.
Digital Chamber CEO Cody Carbone called the draft meaningful progress toward a Senate vote, while signaling members may still push for changes. Not yet settled is whether the 2029 sunset, the DOJ-only enforcement structure, or the exclusion of officials' children will be enough to secure the Democratic support the bill needs to clear the chamber, and whether further revisions to the ethics section will emerge before any floor vote, a point also raised in commentary linked via CoinDesk.