The revised CLARITY Act, introduced this week, would bar U.S. presidents and their spouses from launching crypto tokens for compensation. The bill also hands the Commodity Futures Trading Commission broader authority over digital commodity markets. It's the latest attempt to tighten rules around political figures and crypto after a string of high-profile token launches drew scrutiny.
What the token ban covers
The provision targets any digital token issued by a sitting president or their spouse if the token generates personal profit. That includes memecoins, utility tokens, or any other crypto asset launched while the president is in office. The ban doesn't apply to tokens issued before taking office, as long as they aren't used for compensation during the term. Lawmakers say the goal is to prevent conflicts of interest and stop the use of presidential influence to pump a personal token.
CFTC gets a bigger remit
Beyond the token ban, the revised bill expands the CFTC's jurisdiction over digital commodity markets. That means the agency would get explicit authority to oversee trading, custody, and market manipulation in crypto assets deemed commodities — think bitcoin, ether, and others not classified as securities. The CFTC has long argued it needs clearer statutory power to police these markets. This section of the bill gives it that.
The timing isn't accidental. Several token launches by political figures in the past two years have left regulators scrambling. The CLARITY Act's authors say the dual approach — banning presidential tokens while empowering the CFTC — closes two gaps at once.
The bill now heads to committee. No vote has been scheduled yet.
