For the first time in US legislative history, the CLARITY Act now includes explicit legal limits on how sitting presidents and federal officials can earn money from the crypto sector. Senate Republicans updated the bill on Wednesday, inserting provisions that bar US presidents, senior federal officials, and certain public figures from issuing digital assets under their own names, sponsoring token projects, or taking direct financial cuts from such ventures.
The updated draft, obtained by CNBC, goes further than previous versions of the bill, which focused primarily on which regulators would oversee crypto markets. The new ethics clauses treat presidential crypto activity as a conflict-of-interest problem, not just a market one. That framing matters, because it puts the restrictions in the same legal category as rules on stock trading and business ownership for officials in office.
The timing is pointed. Donald Trump launched his own TRUMP meme token while in office, and the coin has since shed a significant portion of its value. The new provisions would make that kind of move illegal for any future president. Whether they apply retroactively is not addressed in the current draft.
The broader CLARITY Act still has a long road ahead in the Senate. Its core mission, settling the turf war between the SEC and the CFTC over crypto oversight, remains the bill's heaviest lift. The ethics additions are a relatively small section, but they give the legislation a sharper political edge heading into floor debate.
This article is for informational purposes only and does not constitute financial or investment advice.
