Clarity Act draft bars Trump from issuing crypto until 2029

A 616-page Senate draft of the Clarity Act would bar President Donald Trump, senior administration officials and their spouses from issuing or sponsoring digital assets while in office. The restriction would expire at noon on January 20, 2029.

The provision would not prevent covered officials from holding or investing in cryptocurrencies and does not extend the ban to their children. Enforcement authority under the provision is assigned solely to the U.S. Department of Justice.

The draft keeps a separate section called the Blockchain Regulatory Certainty Act, which creates a legal safe harbor stating that non-custodial software developers are not “money transmitters.” That language follows prosecutions that led to prison sentences for some developers and is framed by industry groups as a protection for onshore crypto development.

Law enforcement organizations and a coalition of 82 Catholic leaders have objected to the developer safe harbor, warning it could weaken safeguards against human trafficking, money laundering and child exploitation.

The draft also preserves limits on stablecoin yield. Under the language, stablecoin issuers and some service providers would be prohibited from offering rewards based solely on stablecoin balances. Banks and trade groups have pushed for different rules on yield and consumer protections.

The ethics provision was added after Democrats pressed for limits tied to President Trump’s crypto activities. Financial disclosures released last month showed more than $1.2 billion in crypto-related income for Trump in the prior year. Democrats have cited his meme-coin projects and the family-run World Liberty Financial as potential conflicts of interest. Senator Elizabeth Warren and other Democrats have sought a broader ban that would reach the president, vice president, senior officials, members of Congress and their families; critics say the current draft falls short because it excludes officials’ children and includes a sunset date.

Senators view the ethics language and enforcement terms as likely final points of negotiation as leadership seeks the 60 votes needed to pass the bill. Majority Leader John Thune plans to seek floor action soon, and the first week of August is seen as the last practical window before the Senate’s August recess and the November elections.

In a statement, Digital Chamber CEO Cody Carbone called the draft “a meaningful step toward the Senate vote on the Clarity Act we’ve been calling for” and said the group will review the text and provide feedback as it moves through Congress.