Senate Crypto Bill Would Have Required Officials to Divest or Place Assets into Blind Trust

The Senate draft of the CLARITY Act aimed to establish crypto market regulations and prevent government officials from having a financial stake in digital assets. The bill proposed that senior federal officials, including Cabinet members and their spouses, would have to divest or place any equity interests worth at least $15,000 in companies involved with digital assets into a qualified blind trust. However, the draft exempted adult children of these officials from this requirement.

Commerce Secretary Howard Lutnick's situation illustrates the complexities surrounding this issue. He transferred his ownership of Cantor Fitzgerald to trusts benefiting his adult children after joining President Donald Trump's Cabinet in February 2025. Although he no longer has direct control over the company, its economic fortunes remain tied to the family business.

Under the proposed rules, Trump himself would have had to divest or place any qualifying equity interest into a blind trust, but his adult children would not be subject to the same restrictions. This distinction was one of the reasons several Democrats opposed the bill, citing concerns that it did not go far enough in preventing government officials and their families from having financial interests tied to crypto businesses.

The CLARITY Act's ethics language has been described as a substantial concession made during bipartisan negotiations. However, critics argue that it still allows for too much financial connection between government officials and the crypto industry, which is heavily affected by government policy.