Revised CLARITY Act Adds Ethics Limits for Public Officials and Targets Crypto Token Dealings

A revised draft of the CLARITY Act would bar presidents, vice presidents and other senior public officials—along with their spouses—from issuing or sponsoring digital assets for compensation while in office. The ethics language is part of a broader rewrite that also expands the Commodity Futures Trading Commission's (CFTC) oversight of digital commodity markets. New ethics framework for official-linked tokens The proposal applies to "public officials or employees" and their spouses, relying on the existing federal ethics definition rather than creating a new one. Covered individuals would be prohibited, during their term, from issuing or sponsoring a digital asset in exchange for compensation. The bill defines "issue" to include creating, minting, launching or controlling the initial sale or distribution of a digital asset. "Sponsor" is defined broadly to include agreements to fund, organize or publicly endorse a token, including allowing use of a person's name, image, likeness or official position in connection with a token's creation or promotion. If a digital asset is determined to have been issued or sponsored in violation of these provisions, the draft would prohibit it from being listed for trading on a digital asset intermediary. The restrictions would apply only while the official remains in office and would also cover the official's spouse for the same period. Timing draws focus amid scrutiny of Trump-linked crypto activity The revised CLARITY Act does not name President Donald Trump or any specific project, but its release comes as Trump and his family have expanded their footprint in digital assets over the past year, including the TRUMP memecoin and other crypto-related businesses. Those ventures have drawn criticism from ethics experts and some lawmakers, who argue elected officials should not profit from digital asset projects while serving. The draft does not impose a blanket ban on crypto ownership. It explicitly allows covered individuals to hold digital assets as investments, subject to existing disclosure and conflict-of-interest requirements. The ethics restrictions would be temporary, set to sunset at noon on January 20, 2029, unless Congress extends them. Broader CLARITY Act overhaul expands market-structure rules The ethics provisions are one element of a substantially expanded CLARITY Act draft. The revision introduces a new framework for CFTC-regulated digital commodity intermediaries, including exchanges, brokers, dealers and custodians. It would establish federal jurisdiction over registered participants in digital commodity markets while preserving state enforcement authority over fraud and generally applicable state laws. The proposal also adds provisions allowing courts, in certain circumstances, to order the seizure, freezing, burning and reissuance of payment stablecoins. Additional law-enforcement measures and technical amendments linked to the GENIUS Act are included as well. Final Summary The updated CLARITY Act would prohibit public officials and their spouses from issuing or sponsoring digital assets for compensation while in office. It also expands the CFTC's authority over digital commodity markets and adds new stablecoin, enforcement and market-structure provisions.