New Clarity Act Proposal Targets Government Crypto Trading

Senate negotiators have released a new version of the Digital Asset Market Clarity Act that includes strict ethics rules. The bill seeks to ban the president, vice president, members of Congress, and federal judges from issuing or sponsoring digital assets while in office. This update addresses concerns about potential conflicts of interest for high ranking government officials.

The Department of Justice would handle enforcement under this plan. Officials could face fines reaching 250,000 dollars per day if they violate these rules. To stay in compliance, those currently holding assets would need to either sell them or move them into a blind trust. This change comes after reports that President Trump approved the ethics language.

While the bill is moving forward, it faces strong headwinds in the Senate. A group of Democrats has already criticized the draft, claiming it does not go far enough to protect consumers or stop illicit finance. Because the bill needs 60 votes to pass, at least seven Democrats must support it for the legislation to succeed.

Time is running out for the bill to become law before the summer recess and the upcoming midterm elections. Polymarket bettors currently estimate only a 33 percent chance that the Clarity Act will be signed into law this year. Traders are watching these developments closely to see if lawmakers can reach a deal in the coming weeks.