Senate Republicans released a new draft of the CLARITY Act this week, adding an ethics provision that would ban covered elected officials from engaging in cryptocurrency. The provision mirrors a similar commitment President Donald Trump made earlier this year, but Democrats have yet to signal support for the updated bill.
What the provision says
The language prohibits covered elected officials — those already subject to federal ethics rules — from holding, trading, or otherwise transacting in digital assets. It's designed to prevent conflicts of interest as lawmakers continue to shape crypto policy. The exact scope of who counts as a covered official isn't spelled out in the draft, but it's expected to include members of Congress and senior executive branch appointees.
Following Trump's lead
President Trump agreed to a similar ban earlier this year, though the details of that commitment were never made public. By including the same standard in the CLARITY Act, Republicans are essentially asking Congress to live by the same rules Trump set for himself. That could help the bill's sponsors frame the legislation as a good-government measure rather than just another industry bill.
Democrats stay quiet
So far, Democrats haven't said whether they'll back the new draft. Their silence leaves the bill's path uncertain. Without bipartisan support, the CLARITY Act could stall — especially in a divided Senate where most major crypto legislation needs at least some Democratic votes to advance. Some Democrats have pushed for stronger consumer protections and exchange oversight, which the current draft may not address.
The bill is expected to head to committee for markup, though no date has been set. The coming weeks will show whether the ethics provision can bridge the partisan divide — or if it's just another sticking point.
