Revised CLARITY Act Would Bar the President and Officials From Issuing Crypto Until 2029

Senate Republicans on July 22 released a revised draft of the market-structure bill known as the CLARITY Act, adding a conflict-of-interest section that would prohibit the president, vice president, members of Congress, federal judges and their spouses from issuing or sponsoring digital assets for compensation while in office, CoinDesk reported.

The restriction is temporary. The provision carries a sunset clause stating it has no force after noon on January 20, 2029, the end of the current presidential term, and it would still allow officials to invest in crypto and does not extend to their children, according to CryptoSlate. Enforcement would fall to the Justice Department, a point Democratic negotiators have criticized as unreliable.

The ethics section is directed at the crypto ventures tied to President Donald Trump, and it has become the central obstacle to passage. Seven pro-crypto Senate Democrats said the draft still falls short on ethics, consumer protection and illicit-finance provisions, while adding that they remain committed to working with Republicans to advance the bill. Senator Cynthia Lummis, a lead negotiator, said further discussion on the ethics language was expected.

Traders lowered the estimated odds of near-term passage. The prediction-market probability of the Clarity Act becoming law fell to 38%, one factor cited, alongside higher oil prices and interest rates, in a broad decline in crypto prices.