Senate Republicans have released an updated version of the CLARITY Act, added new ethics provisions while leaving key crypto policy sections largely unchanged.
Senator Cynthia Lummis released the "Ethics Requirements" draft in an X post, appreciating that "No President in American history has voluntarily agreed to self-imposed, substantive ethics limits."
The ethics overhaul comes after the Trump family already generated at least $2.3 billion from various crypto ventures.
New Ethics Package
In an X post on July 22, former FOX Business journalist and Crypto In America host Eleanor Terrett summarized the draft as lawmakers race to advance crypto market structure legislation before Congress’ August recess.
One of the biggest additions is a new ethics package negotiated between the White House and Lummis (R-Wyo.), as well as Bernie Moreno (R-Ohio.).
- The proposal would prohibit the president, vice president, members of Congress, federal judges and other covered officials, and their spouses, from issuing or sponsoring digital assets for compensation while in office through Jan. 20, 2029.
- The draft would also require covered officials to either divest their cryptocurrency holdings and investments in crypto companies, place them into a blind trust they do not control, or do both.
- The legislation further grants the Department of Justice civil enforcement authority over ethics violations, including the ability to sue cryptocurrency exchanges that knowingly list prohibited tokens.
- Officials would also be required to disclose cryptocurrency sales exceeding $1,000, while the Government Accountability Office would study additional ethics issues.
The Timing Is Notable
Ever since President Trump returned to the White House in January 2025, his family has collected revenue on several crypto ventures: World Liberty Financial (CRYPTO: WLFI), the TRUMP (CRYPTO: TRUMP) meme coin, American Bitcoin (NASDAQ:ABTC), and AI Financial Corp (NASDAQ:AIFC).
Terrett noted that Democrats have not yet signed off on the proposal and are expected to push for changes, particularly objecting to giving the DOJ sole enforcement authority without involving state attorneys general.
The revised draft introduces an entirely new section aimed at strengthening law enforcement’s ability to combat crypto-related crime.
The legislation also outlines how digital assets would be treated during the bankruptcy of a cryptocurrency exchange or custodian.
According to Terrett, the framework is designed to ensure customer assets remain customer property rather than becoming part of a bankrupt company’s estate, providing protections intended to prevent a repeat of the collapse of FTX.
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