Clarity Act Bars Trump From Crypto, But Only Till 2029

The latest version of the long-awaited Clarity Act is circulating in the U.S. Senate, and it includes a hotly debated ethics provision: restrictions on the president and his family from engaging in cryptocurrency business activities. The ban is written to expire, and it would not place restrictions on President Donald Trump's sons.

According to the 616-page draft text, the ethics provision would block public officials and employees, along with their spouses, from issuing or sponsoring digital assets while in office. The provision still allows officials to invest in crypto. The restrictions do not extend to the children of public officials.

Enforcement would fall to the Justice Department. The section carries a sunset clause stating it will have "no force and effect on and after noon on January 20, 2029"–the end of the current presidential term.

The ethics language has been widely viewed as the final hurdle to passing the sweeping market-structure bill. If passed and signed into law, it would formally legalize most cryptocurrency activity in the United States.

"Today's draft is a meaningful step toward the Senate vote on the Clarity Act we've been calling for," Digital Chamber CEO Cody Carbone said in a statement. "We look forward to reviewing the latest, and we will provide our members' feedback on how the bill may still be improved as it moves forward."

At the center of the current fight over conflicts of interest are President Trump's meme coin ventures and his family's company, World Liberty Financial. Financial disclosures released last month showed Trump earned more than $1.2 billion from crypto businesses last year. Democrats have cited that as evidence of conflicts of interest. Senator Elizabeth Warren has demanded the bill bar the president, vice president, senior officials, members of Congress and their families from profiting off the sector.

The temporary nature of the ban, and the decision to leave enforcement solely with the DOJ, is likely to draw Democratic objections. Since the language does not cover President Trump's children–Don Jr. and Eric Trump, who are involved in World Liberty Financial–it may not deliver the full effect Democrats had hoped for. The bill needs 60 votes to clear the Senate, requiring support from at least 10 Democrats, many of whom have already balked.

Apart from the ethics debate, the latest draft also preserves the Blockchain Regulatory Certainty Act. The provision creates a safe harbor for non-custodial software developers by clarifying that they are not "money transmitters" subject to compliance obligations. Much of the crypto industry considers the measure a red line, arguing it provides legal certainty and keeps development onshore. The provision follows Trump-era DOJ prosecutions that sent crypto developers to prison for building privacy tools. It has drawn opposition, too. Law enforcement groups and a coalition of 82 Catholic leaders have warned the developer protections could weaken safeguards against human trafficking, money laundering, and child exploitation.

Another major point of contention–the matter of so-called stablecoin yield that has drawn the ire of the banking industry–remains unchanged from the previous version of the bill. The language places limits on idle yield, meaning neither stablecoin issuers nor providers like Coinbase would be able to offer rewards solely on stablecoin balances.

Majority Leader John Thune intends to move to floor action in the coming days. With the Senate's August recess approaching, the first week of August is widely seen as the last realistic window for the bill to advance before attention shifts to the November midterms.