Congressional Action: Clarity Act Progresses With Ethics Guardrails
Senate Republicans released a new draft of the Clarity Act, the long-awaited market-structure bill designed to clarify regulatory jurisdiction over digital assets. The revised text includes a temporary ban preventing top federal officials and their spouses from issuing or sponsoring digital assets, with the ethics provision set to expire in 2029. Enforcement of the ban rests solely with the Department of Justice.
The bill preserves core pro-crypto provisions, including liability shields for non-custodial developers. Lawmakers acknowledge the government-ethics language remains under debate as the measure moves toward a Senate floor finish. The temporary nature of the ethics restriction—rather than a permanent prohibition—reflects ongoing negotiations between Republican factions on the appropriate scope of restrictions on administration officials' crypto activities.
