Clarity Act draft released with temporary ethics restriction
Senate Republicans unveiled an updated draft of the Clarity Act that includes a temporary ban preventing President Trump and other top federal officials from issuing or sponsoring digital assets. The restriction is set to expire in 2029, with enforcement delegated solely to the Department of Justice.
Senator Cynthia Lummis, a lead negotiator on the bill, expressed being "pleased" that the updated draft was ready for release. However, key Democratic lawmakers said the bill "falls short" on ethics and other issues, signaling continued disagreement over core provisions as lawmakers work toward a final version.
The bill maintains pro-crypto elements including protections for non-custodial developers. The debate over ethics provisions, enforcement mechanisms, and additional safeguards remains unresolved, with lawmakers indicating these points will be subject to further discussion before the legislation advances.
SEC commissioner warns DeFi products may trigger securities laws
SEC Commissioner Hester Peirce cautioned that crypto vaults, onchain lending products, and other asset management tools may fall under U.S. securities laws depending on their structure and operation. The warning signals the regulator's intent to scrutinize how decentralized finance products are designed and marketed.
Peirce's remarks indicate that products resembling investment funds or advisers could face regulatory classification as securities, regardless of their decentralized nature. This position reflects broader SEC efforts to establish clearer boundaries around which crypto and DeFi activities fall within its jurisdiction.
Political support and international regulatory activity
Crypto entrepreneurs Tyler and Cameron Winklevoss donated $10 million from a bitcoin sale to a Trump Super PAC, reflecting continued political engagement by industry figures amid the Clarity Act negotiations.
In parallel international developments, artificial intelligence company Anthropic joined the UK Financial Conduct Authority's regulatory sandbox, with Claude AI models set to support financial services testing. This move indicates growing focus on AI applications within regulated financial systems internationally.
This article was written by our AI pipeline from aggregated headlines and live market data. Not financial advice.