Crypto▼ Bearish
CLARITY Act Rewrite Bans Presidents, Spouses From Crypto Token Issuance
A revised CLARITY Act would prohibit presidents, vice presidents, and their spouses from issuing or sponsoring digital tokens for compensation, while expanding CFTC authority over digital commodity markets.
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A revised version of the CLARITY Act would prohibit presidents, vice presidents, and their spouses from issuing or sponsoring digital assets for compensation while in office. The proposal also expands the Commodity Futures Trading Commission's oversight of digital commodity markets.
The ethics provisions arrive as scrutiny of crypto ventures tied to public officials has intensified. The bill creates a new ethics framework covering "public officials or employees" and their spouses. It adopts the existing federal ethics definition, which includes the president and vice president alongside other senior government officials.
Under the proposal, covered individuals would be barred from issuing or sponsoring a digital asset in exchange for compensation during their term. The bill defines "issue" to include creating, minting, launching, or controlling the initial sale or distribution of a digital asset. "Sponsor" is defined broadly, covering agreements to fund or organize a token, or to publicly endorse it. That includes permitting the use of a person's name, image, 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 those provisions, it could not be listed for trading on a digital asset intermediary under the proposal. The restrictions apply only while the official remains in office and also cover the official's spouse during that period.