Senate Republicans released updated text of the Digital Asset Market Clarity (CLARITY) Act with a new ethics provision that President Trump approved. The provision became the final unresolved issue delaying the legislation before Trump approved it and the revised language circulated to Senate Republicans.

The updated draft bars the president, vice president, members of Congress, federal judges, and other covered officials, along with their spouses, from issuing or sponsoring digital assets for compensation while in office, with the restriction sunsetting on January 20, 2029. Covered officials would be required to either sell their crypto holdings and related company investments or place them in a blind trust, or both, and the Department of Justice would receive civil enforcement authority over violations.

The bill retains other previously negotiated provisions: Blockchain Regulatory Certainty Act protections for noncustodial developers and infrastructure providers, self-custody rights under the Keep Your Coins Act, a ban on interest for idle stablecoin balances (while permitting activity-based rewards), a requirement that stablecoin issuers comply with lawful freeze and seizure orders, and bankruptcy protections shielding customer assets from an exchange or custodian's estate. It also establishes a federal framework splitting oversight between the SEC and CFTC.

Democratic support remains uncertain. Democrats have objected to the Justice Department serving as the regulator enforcing the ban on elected officials issuing crypto, and some Senate Democrats are separately pushing for state attorneys general, rather than DOJ alone, to enforce the ethics provisions. The Senate needs 60 votes, including at least seven Democrats, to advance the bill before the August recess. If passed, the Senate version would still need to be reconciled with the House-passed bill before reaching the president's desk.

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