The US Senate is considering an updated version of the Clarity Act that would prohibit presidents and other federal officials from issuing or sponsoring cryptocurrencies and other digital assets while in office. The legislation includes ethics provisions banning officials, their spouses, and employees from involvement with digital assets during their term and requiring divestment or blind trusts for prior crypto holdings [1, 2, 3].
The new ethics ban on officials issuing cryptocurrencies is set to expire in 2029. Enforcement of these provisions would fall under the United States Department of Justice (DOJ), which would oversee compliance and penalties [3, 2].
Democratic senators have opposed assigning enforcement authority solely to the DOJ, arguing state attorneys general should share responsibility. Sen. Angela Alsobrooks, D-Md., called the DOJ enforcement plan "wild and unserious and stone crazy," citing the department's past unwillingness and inability to fully enforce relevant laws [3].
The bill could affect former President Donald Trump, who reportedly earned an estimated $1.4 billion from crypto business ventures in 2025. Trump has expressed support for the new ethics provisions limiting officials' crypto activities [3, 2].
Following the announcement of the updated regulatory framework, market confidence in Bitcoin saw a slight decline amid concerns over regulatory uncertainty [2].
The Clarity Act's updated ethics provisions were introduced by Senate Republicans on July 22, 2026, formally adding the ban on federal officials' issuing or sponsoring of cryptocurrencies [1, 3, 2]. The ethics ban will expire by 2029, removing the restrictions unless further extended [3].
