Senate Republicans released an updated version of the Clarity Act on Wednesday that bars the president, vice president, members of Congress, federal judges, and other covered officials from issuing or sponsoring digital assets. The ban runs until noon on January 20, 2029 — the end of the current presidential term. It’s a direct response to President Trump’s crypto ventures, including the $TRUMP token and World Liberty Financial, which a July financial disclosure tied to roughly $1.4 billion in 2025 income.
The ban on officials
Covered officials can avoid violating the rule by placing their digital asset interests in a qualified blind trust or divesting them, following ethics-agreement rules under section 208 of title 18. There’s also a safe harbor for continued use of a covered individual’s name, image, or likeness — if that use started before they entered covered status. The ethics package was negotiated between the White House and Republican Senators Cynthia Lummis and Bernie Moreno. It does not have Democratic sign-off.
What else is in the 616-page draft
The bill keeps the Blockchain Regulatory Certainty Act intact, protecting non-custodial developers and infrastructure providers from being treated as money transmitters. The Lummis-Grassley amendment maintains criminal liability for anyone who “knowingly” facilitates illicit transactions. The Keep Your Coins Act preserves the right to self-custody of digital assets. On stablecoins, a Tillis-Alsobrooks compromise bans interest on idle payment-stablecoin balances but allows rewards tied to activity like transactions or staking. Stablecoin issuers must comply with lawful orders to freeze, seize, burn, and reissue tokens. The bill also includes bankruptcy protections that treat customer digital assets as property of the customer — not part of a failed company’s estate.
Funding is set aside for state and local crypto investigations and blockchain analytics. There’s training for police and prosecutors, a “cyber center” aimed at nation-state actors like North Korea and Iran, and a public-private task force on fraud.
Political dynamics
The House passed its version of the Clarity Act in July 2025 by a 294-134 vote. The Senate Banking Committee advanced its text in a 15-9 vote in May. But the new draft lacks Democratic support for now. Coinbase and other firms have pushed for passage before the August recess. Treasury Secretary Scott Bessent called the effort at the “1-yard line.” Trump has pressed the chamber to act.
Next steps
Majority Leader John Thune plans a floor vote in the coming weeks. Without Democratic buy-in, the bill’s path is uncertain. The August recess is the next hard deadline — and the clock is ticking.
