The U.S. Senate is currently reviewing an amendment to the CLARITY Act, a bill aimed at regulating the cryptocurrency market. This amendment includes ethical guidelines that restrict federal officials, including the President, from issuing or sponsoring digital assets. The move appears to address concerns over potential conflicts of interest, particularly in light of the Trump family’s cryptocurrency ventures, and aims to strictly manage public officials’ involvement in digital assets.
On Wednesday, CNBC and other media outlets reported that Republicans unveiled an amendment prohibiting federal officials – including the President, Vice President, members of Congress, and federal judges – as well as their spouses, from receiving compensation for issuing or sponsoring digital assets while in office until January 20, 2029. The amendment requires public officials to divest any cryptocurrencies they hold and any shares in crypto companies, or place them in a blind trust. Officials must also publicly disclose any sales of digital assets exceeding 1,000 USD.
Furthermore, the amendment grants the U.S. Department of Justice (DOJ) civil enforcement authority for violations of these ethical guidelines and allows it to sue exchanges that intentionally list prohibited tokens. It also mandates that the Government Accountability Office (GAO) conduct research to identify potential loopholes in these additional ethical regulations.
Republicans plan to push for a Senate vote as early as next week based on the amendment agreed upon with the White House. However, passing the bill requires cooperation from Democratic lawmakers, suggesting that bipartisan negotiations will continue, particularly regarding the DOJ’s enforcement authority and certain ethical provisions.