CLARITY Act Stalled in Senate Over Controversial Crypto Ethics Provision

The CLARITY Act, a bipartisan bill aimed at regulating cryptocurrencies in the US, has hit a roadblock in the Senate. The bill's crypto ethics provision, negotiated by Republicans and the White House, has drawn fire from seven Democratic senators who claim it is designed to let President Trump walk free.

The provision bars federal public officials and their spouses from issuing or sponsoring new digital assets while in office. It also prohibits platforms from listing any asset issued in violation of this rule. However, officials with pre-existing crypto holdings can remain compliant by placing those assets in a qualified blind trust or divesting them.

The enforcement authority rests exclusively with the Department of Justice, and state attorneys general are explicitly barred from bringing any enforcement actions. The provision sunsets at noon on January 20, 2029, effectively granting retroactive immunity to Trump after he leaves office.