A revised version of the CLARITY Act introduced new ethics rules prohibiting presidents, vice presidents and other senior public officials, along with their spouses, from issuing or custodial digital assets for compensation while in office.
The proposal is part of a broader rewrite of legislation that also expands the Commodity Futures Trading Commission’s (CFTC) oversight of digital commodity markets.
However, the ethics provisions are among the most notable additions as they arrive amid growing scrutiny of cryptocurrency projects linked to public officials.
New ethical rules target officially backed digital assets
the Revised draft law Creates a new ethical framework covering “public officials or employees” and their spouses.
Instead of creating a new definition, it adopts the existing federal ethics definition, which includes: The President and Vice President along with other senior government officials.
Under the proposal, covered individuals would be prohibited from issuing or sponsoring digital assets for compensation during their term.
The bill defines “issuance” to include creating, minting, releasing, or controlling the initial sale or distribution of a digital asset. It also defines “sponsor” broadly, covering agreements to fund, regulate, or publicly certify a token.
This includes permission Use a person’s name, likeness, likeness or official position in connection with its creation or promotion.
If a digital asset is found to have been issued or sponsored in violation of these provisions, it cannot be listed for trading on a digital asset broker under the proposal.
The restrictions would only apply while the official remains in office, and would also include the official’s spouse during that period.
The proposal comes as Trump’s cryptocurrency projects are under scrutiny
Although the revised CLARITY Act does not mention President Donald Trump or any specific cryptocurrency project, the timing is likely to attract attention.
Trump and his family have expanded their involvement in digital assets over the past year through projects including TRUMP memecoin and other cryptocurrency-related companies. These activities have drawn criticism from ethics experts and some lawmakers.
They questioned whether elected officials should benefit from digital asset projects while serving in office.
However, the proposal does not represent a blanket ban on cryptocurrency ownership. The legislation explicitly allows covered individuals to continue to hold digital assets as investments, subject to existing disclosure and conflict of interest requirements.
Moral judgments will also be temporary. The limitations are It is scheduled to expire at noon on January 20, 2029, unless extended by Congress.
The Code of Ethics accompanies the comprehensive reform of the CLARITY Code
The language of morality forms only one part of a greatly expanded version of the law of intelligibility.
The revised proposal adds an entirely new framework to CFTC-regulated digital commodity brokers, including exchanges, broker-dealers and custodians.
As it establishes Federal jurisdiction over registered participants in digital goods markets while Maintain state fraud enforcement authority and applicable state law generallyQ.
Elsewhere, the draft law adds new provisions Allowing courts to order the confiscation, freezing, burning and reissuance of stablecoins for payment in certain circumstances.
It also introduced additional law enforcement measures and technical amendments related to the GENIUS Act.
Final summary
- The updated CLARITY Act would prevent government officials and their spouses from issuing or custodial digital assets for compensation while in office.
- The revised draft also expands the CFTC’s authority over digital goods markets. It introduces new stablecoin provisions, enforcement and market structure.
