Topline

Republicans released a new draft of the Clarity Act on Wednesday including an ethics clause banning public officials from issuing or sponsoring cryptocurrencies, but critics are already pointing out ways the language could be insufficient at stopping President Donald Trump from profiting through crypto deals.

Key Facts

A new draft of the 600-plus page Clarity Act, obtained by multiple outlets, would enforce new ethics rules on public officials around cryptocurrency—in particular, banning officials, as well as their spouses or employees, from issuing or sponsoring any “digital asset” while they are serving in the role.

However, the draft does not ban officials’ children or other family members from issuing or sponsoring digital assets, meaning Trump’s immediate family could still profit from crypto deals.

The bill would also bar companies from listing a digital asset issued or sponsored by public officials, and require politicians to place their earlier crypto assets in a blind trust or divests them during their term in office—but critics are already warning that these rules could be insufficient at stopping Trump from profiting from his crypto deals, which netted him an estimated $1.4 billion last year.

The White House has previously indicated Trump would still sign a bill with the Republican-authored ethics provision, calling it in a statement to CoinDesk “the most comprehensive and wide-ranging ethics provision in history.”

However, the bill would also task the attorney general with enforcing the ethics rules and bar state attorneys generals from enforcing the rules, and congressional Democrats have signaled they would not support handing enforcement over to the current Justice Department.

The ethics provision is also scheduled to sunset in 2029—expiring on Jan. 20, 2029, the inauguration date for the next president after Trump leaves office.

Surprising Fact

The language of the ethics rules bans public officials from using their name, image, likeness or official position for digital assets. However, it also contains a clause allowing digital asset issuers to continue using a public officials’ likeness if it was issued before they took office. Trump issued his memecoin, $TRUMP, only three days before he took office. Forbes previously estimated Trump made roughly $635 million from the coin in 2025, and about $800 million through the crypto company World Liberty Financial. Trump and his family own a roughly 40% stake in the company, which issues its own cryptocurrency token. The company previously netted the president about $57.4 million the year before.

Crucial Quote

Sen. Angela Alsobrooks, D-Md., one of the Democrats who voted to advance the bill out of committee earlier this year, told reporters she would not support the current version. Speaking at a Semafor conference on Wednesday, Alsobrooks said handing enforcement over to the Justice Department was “wild and unserious and stone crazy,” adding, “it’s an absolute that we cannot completely rely on the DOJ, given what we’ve seen of their inability and their unwillingness to enforce the law.” Instead, Alsobrooks suggested empowering state-level attorneys general to enforce the rules. Later on Wednesday, Alsobrooks was one of seven Senate Democrats who signed a statement insisting the current draft of the Clarity Act “falls short,” specifically citing the ethics language as one of their chief concerns.

Chief Critic

Sen. Elizabeth Warren, D-Mass., the ranking member on the Senate Banking, Housing and Urban Affairs Committee, slammed the Republicans’ proposed draft, insisting it “does nothing” to prevent Trump from further profiting from crypto. A statement from the Massachusetts senator’s office said the new draft was “riddled with major loopholes” and would effectively allow Trump to continue making money through World Liberty Financial.

Contra

Sen. Cynthia Lummis, R-Wyo., whose office released the text of the new draft on Wednesday, defended the language in another statement, insisting “no president in American history has voluntarily agreed to self-imposed, substantive ethics limits like President Trump has.” In a fact sheet attached to the statement, Lummis argued a sunset for the ethics rules was put in place to highlight the fact that Trump was holding himself accountable, insisting “this is a standard President Trump chose to hold himself to, not one Congress imposed on him.”

What to Watch For

The Senate only has days to move forward with a vote on the Clarity Act before Congress leaves for its August recess. No Democrats have come out on record supporting the bill so far, making it unlikely it would reach the 60 votes needed to advance.