Senate Republicans Update Crypto Bill to Include Ethics Restrictions for Federal Officials

2026-07-22

The BareStory

Senate Republicans have released updated text for a major cryptocurrency regulation bill known as the Clarity Act. The revised legislation includes ethics provisions that would ban federal officials, including the president and their spouses, from issuing or sponsoring digital assets while in office. Senate Majority Leader John Thune stated that he expects the Senate to vote on the measure within the next two weeks.

Under the proposed legislation, the Department of Justice would enforce the ban, with the authority to issue daily fines of up to $250,000 against violators. Senator Bernie Moreno stated that President Donald Trump signed off on the ethics portion of the bill. According to a financial disclosure, Trump earned around $1.2 billion in cryptocurrency-related income during his first year back in the White House, which included approximately $580 million from World Liberty Financial, a company co-founded by his family. The draft of the bill notes that these ethics restrictions would sunset in 2029.

The bill currently lacks bipartisan support, primarily due to disagreements over who has enforcement power. The current draft limits enforcement strictly to the federal Attorney General and prevents state attorneys general or private individuals from taking legal action. Democratic Senator Angela Alsobrooks criticized this restriction, stating she would withhold her support because she believes state attorneys general must serve as an enforcement backstop. Democrats have also raised concerns about the Justice Department overseeing elected officials, claiming the federal agency under the current administration cannot be trusted.

Despite currently lacking the 60 votes required to clear the Senate, Thune indicated he intends to proceed with a vote to assess what modifications are needed to gain bipartisan support. Senator Alsobrooks noted that negotiations over the bill's language would continue.

Left Perspective

Dismantle Federal Enforcement Monopolies
Expose Sunset Clause Deficiencies
Shield Elite Financial Interests

Right Perspective

Secure Sovereign Legal Order
Codify Structured Executive Restraints
Avert Partisan Prosecutorial Lawfare

Left Perspective

• Dismantle Federal Enforcement Monopolies True public accountability requires a multi-layered defense to prevent institutional co-optation by powerful federal actors. Restricting enforcement of the Clarity Act strictly to the federal Attorney General leaves the regulatory system highly vulnerable to political capture, particularly when the Justice Department is tasked with policing its own executive branch. By locking out state attorneys general and private litigants, the bill creates a single point of failure that prevents independent oversight and weakens systemic checks on power.

• Expose Sunset Clause Deficiencies Authentic ethics reform cannot be temporary or designed around the lifespans of specific political administrations. Acknowledging that President Trump amassed $1.2 billion in cryptocurrency-related income, including $580 million from his family's co-founded entity, highlights the deep systemic risks of self-dealing in high office. Allowing these crucial ethics restrictions to sunset in 2029 reveals a framework that protects immediate political interests rather than building permanent, structural barriers against state-level financial corruption.

• Shield Elite Financial Interests This perspective fears that a highly centralized enforcement model will ultimately serve to protect, rather than prosecute, high-ranking violators. If the federal Justice Department holds exclusive authority over the proposed $250,000 daily fines, a politically aligned administration can easily choose to neglect enforcement entirely. Without decentralized legal avenues to bypass federal inaction, the public is left defenseless against conflicts of interest at the highest levels of government.

Right Perspective

• Secure Sovereign Legal Order Preserving institutional continuity and the rule of law requires a unified, predictable federal authority to manage complex interstate assets. Allowing state-level attorneys general or private citizens to initiate independent prosecutions under the Clarity Act would invite legal chaos and fragment national regulatory policy. Establishing the federal Attorney General as the sole enforcement body ensures that high-stakes financial regulations are executed with uniform standards, preventing localized political interests from disrupting national governance.

• Codify Structured Executive Restraints Enforcing systemic discipline requires clear, standardized boundaries that command institutional respect while preserving the dignity of the executive office. Securing the President's approval on the ethics portion of the bill and setting severe $250,000 daily fines demonstrates a robust commitment to self-governance and accountability under the law. Advancing the legislation to a vote within two weeks serves as a necessary legislative catalyst, forcing lawmakers to define reasonable boundaries of federal power and resolve outstanding disputes in an orderly manner.

• Avert Partisan Prosecutorial Lawfare This perspective fears that decentralized enforcement power will weaponize the legal system and invite partisan warfare that destabilizes the federal government. Empowering local and state attorneys general to target federal officials, including the president, creates a dangerous precedent of legal fragmentation and political harassment. To protect national sovereignty and maintain systemic stability, ethical standards must be enforced through a single, accountable federal channel rather than a decentralized network of local actors.

How it may affect me

As a U.S. reader:

• You will see a Senate vote on cryptocurrency regulation within the next two weeks to determine what bipartisan modifications are needed for the bill to pass.

• You may experience a digital asset market with fewer potential conflicts of interest as federal officials, including the president and their spouses, are banned from issuing or sponsoring cryptocurrencies while in office.

• You will not have the ability to initiate private lawsuits, nor will your state attorney general be able to prosecute violations, as enforcement is strictly limited to the federal Attorney General.

• You will see these ethics restrictions expire in 2029 due to a sunset clause, meaning any protections against official self-dealing in the cryptocurrency market will be temporary.

Senate Republicans Update Crypto Bill to Include Ethics Restrictions for Federal Officials

The BareStory

Left Perspective

Right Perspective

How it may affect me

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