Senate Republicans released an updated draft of the Clarity Act on Wednesday, introducing new ethics provisions that would prohibit the president, vice president, members of Congress, federal judges, and other covered officials from issuing or sponsoring digital assets. The 616-page bill represents a significant development in the ongoing effort to establish comprehensive crypto regulation in the United States.
New Restrictions Target Public Officials
The updated legislation bars covered individuals and their spouses from issuing or sponsoring digital assets in exchange for consideration during their term of service. The bill also prohibits the listing of any digital asset found to violate this ban.
Officials can comply through several mechanisms:
- Placing digital asset holdings in a qualified blind trust
- Divesting their positions entirely
- Following procedures aligned with existing ethics rules under section 208 of title 18
The provisions include a grandfather clause protecting the continued use of an official's name, image, or likeness if an issuer began using it before the individual entered covered status. All ethics provisions sunset on January 20, 2029, coinciding with the end of the current presidential term.
Industry Protections Remain Intact
Beyond the ethics provisions, the draft preserves key industry protections. The Blockchain Regulatory Certainty Act (BRCA) language remains unchanged, clarifying that non-custodial developers and infrastructure providers are not money transmitters simply for building or maintaining decentralized networks.
The bill also maintains the Keep Your Coins Act provisions supporting self-custody rights and includes the Tillis-Alsobrooks stablecoin compromise. This compromise bans interest on idle payment-stablecoin balances while permitting rewards tied to specific activities like transactions or staking.
Additional provisions expand law enforcement capabilities with funding for state and local crypto investigations, training programs for prosecutors, and new requirements for stablecoin issuers to comply with lawful freeze and seizure orders.
Implications for the Crypto Workforce
For blockchain professionals, the updated Clarity Act signals continued momentum toward regulatory clarity, which many industry leaders view as essential for sustainable growth and institutional adoption. The bill's passage could accelerate hiring as companies gain clearer operational guidelines, particularly in compliance, legal, and development roles focused on decentralized infrastructure.
The Senate Banking Committee advanced the legislation in May with a 15-9 vote. Majority Leader John Thune has scheduled a floor vote for the coming weeks, though the bill currently lacks Democratic support.
