Senate negotiators on Wednesday put out a new working draft of the Digital Asset Market Clarity Act that, for the first time, includes a government ethics provision. The draft would ban the president, vice president, members of Congress, federal judges, and their spouses from issuing or sponsoring digital assets for personal gain while holding office.
What the draft actually says
Enforcement would land with the Department of Justice, which could hit violators with fines of up to $250,000 per day. Officials who already hold digital assets would have two ways to comply: sell their holdings or move them into a blind trust. Senator Cynthia Lummis of Wyoming, who has been driving the bill forward, released the draft after President Trump reportedly signed off on the ethics language.
The backdrop matters here. Trump reported roughly $1.4 billion in crypto-related income during his first year back in office, and that figure has made the ethics clause the single biggest sticking point in negotiations. Democrats spent months pushing to cut senior officials and their families off from industry profits, pointing specifically to ventures like Trump's stake in World Liberty Financial.
The votes aren't there yet
The Clarity Act needs 60 votes in the Senate, which means at least seven Democrats have to cross the aisle. Right now, that math looks shaky. Seven Senate Democrats, including Ruben Gallego and Cory Booker, signed a joint statement saying the latest draft "falls short" on ethics, consumer protection, and illicit finance rules. Senator Angela Alsobrooks reportedly went further, calling DOJ enforcement of the ethics provision "an unserious offer."
The calendar is the other pressure point. The Senate heads into summer recess in just over two weeks, and the first week of August is widely viewed as the last realistic window to move the bill before midterm politics take over. Even if it clears the Senate, the bill would still need to go back to the House and land on Trump's desk.
Prediction market Polymarket currently puts the odds of the Clarity Act becoming law this year at 33%.
This article is for informational purposes only and does not constitute financial or investment advice.
