Clarity Act Draft Bars Trump From Crypto Ventures Until 2029
In brief
- Ethics provision blocks president, officials, and spouses from issuing or sponsoring digital assets while in office
- Restrictions expire January 20, 2029, at end of current presidential term
- Non-custodial software developers receive safe harbor; law enforcement warns against provision
- Majority Leader John Thune plans floor action in coming days
- Children of officials excluded from ethics restrictions
Ethics Ban With an Expiration Date
The ethics provision would block public officials and employees, along with their spouses, from issuing or sponsoring digital assets while in office. The restrictions do not extend to the children of public officials. Critically, 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 move addresses longstanding Democratic concerns. Senator Elizabeth Warren had demanded the bill bar the president, vice president, senior officials, members of Congress and their families from profiting off the crypto sector. The provision still allows officials to invest in crypto, meaning they can hold digital assets—just not issue them.
Enforcement would fall to the Justice Department, which carries enforcement implications for high-profile figures like Trump. Financial disclosures released last month showed Trump earned more than $1.2 billion from crypto businesses last year, largely through his family's company, World Liberty Financial, where Don Jr. and Eric Trump are involved.
Developer Protections and Stablecoin Curbs
The latest draft also preserves the Blockchain Regulatory Certainty Act, a provision creating a safe harbor for non-custodial software developers by clarifying they are not money transmitters. This has drawn fierce opposition. 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.
The bill also places limits on stablecoin yield. Neither stablecoin issuers nor providers would be able to offer rewards solely on stablecoin balances—a measure aimed at preventing yield-chasing behavior that could destabilize the asset class.
The Path Forward
The bill needs 60 votes to clear the Senate, requiring support from at least 10 Democrats. Majority Leader John Thune intends to move to floor action in the coming days. Timing is tight. 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.
"Today's draft is a meaningful step toward the Senate vote on the Clarity Act we've been calling for. 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." — Cody Carbone, Digital Chamber CEO
