US Senate Proposes Strict Crypto Ban for Officials in CLARITY Act Update

Senate Republicans dropped a heavily revised version of the CLARITY Act on July 22, pushing the major digital asset bill closer to a potential floor vote. The updated text aims to fix several long standing disputes by adding strict ethics rules for government officials, new stablecoin guidance, and clear rules for crypto developers. Senator Cynthia Lummis thanked her Democratic colleagues for their input, stating her commitment to getting the bill passed.

The most notable update targets conflicts of interest by banning the president, vice president, members of Congress, and federal judges from issuing or sponsoring cryptocurrencies for profit while in office. These rules also apply to their spouses. Officials must sell existing holdings or place them into blind trusts, and any crypto sales over 1,000 dollars must be publicly disclosed. This section responds directly to pressure from Democrats regarding President Donald Trump and his family projects.

Beyond ethics, the updated bill keeps important protections for software developers and decentralized finance platforms, shielding them from money transmitter laws if they do not control user funds. At the same time, the text pairs these protections with new tools for law enforcement to fight crypto crime. Republicans still need Democratic votes to reach the 60 vote threshold in the Senate, so more negotiations are expected before the bill moves forward.