US officials would be prohibited from issuing or sponsoring digital tokens until 2029 under the ethics provisions of the proposed CLARITY Act, Senator Cynthia Lummis said this week. The Wyoming Republican confirmed that the language would apply to any president's crypto ventures — including those of Donald Trump. The rule is designed to prevent conflicts of interest while elected officials hold office.
What the ethics language covers
Lummis outlined the scope during a brief statement. The ban covers token issuance and sponsorship by US officials. It runs through 2029, effectively covering the remainder of the current presidential term and any potential future terms that begin before that cutoff. The senator didn't specify whether the restriction would apply retroactively to tokens already launched.
Why Trump's ventures are in the crosshairs
Donald Trump has been active in crypto. His family launched a decentralized finance project and he's promoted NFT collections. Under the CLARITY ethics rules, those activities would be off-limits while he's in office. Lummis didn't name Trump directly in her remarks, but the implication is clear: the bill targets any president's personal crypto projects. The timing isn't great for Trump — he's reportedly been exploring a new token offering.
The bill hasn't passed yet. It's still in committee. Lummis is pushing for a vote before the August recess. The ethics language is one of several sticking points. Some lawmakers worry it's too broad. Others say it doesn't go far enough. The 2029 sunset date is a compromise — it gives future administrations a clean slate. For now, anyone in the executive branch thinking about launching a token has a clear deadline: wait until 2029 or find another line of work.
