CLARITY Act Draft Bars Official Crypto, Stablecoin Yield

The updated CLARITY Act language circulating on social media includes ethics provisions that bar certain government officials from issuing or promoting digital assets. Pre-existing holdings must go into a blind trust or be divested.

Some Democrats who have blocked the bill from reaching the Senate floor cited the Trump family's crypto activity, the text shows.

A ban on stablecoin yield prohibits holders from receiving interest or payments on stablecoins, though rewards for other activities are allowed.

The CFTC and SEC get one year to draw jurisdictional boundaries. The CFTC would oversee registration for digital commodity exchanges, brokers, and custodians.

The Blockchain Regulatory Certainty Act, which provides a safe harbor for developers whose software could be used for legal or illegal purposes, remains intact.

It is not clear whether enough Democrats will support the bill to advance it to a vote and eventual signature.