Senate crypto bill draft adds Trump ethics ban with 2029 end date

A new Senate draft of the Clarity Act adds a political flashpoint to a bill crypto investors have been watching for months: limits on officials launching or backing digital assets. The catch is timing and scope, since the restriction would expire at noon on January 20, 2029, and would not cover the children of public officials.

According to the 616-page draft circulated by Sen. Cynthia Lummis, the ethics section would bar public officials, government employees and their spouses from issuing or sponsoring digital assets while they are in office. A digital asset is a crypto token or similar blockchain-based asset. The draft would still allow officials to invest in crypto.

Enforcement would sit with the Justice Department, according to the draft. That matters because Democrats have pushed for tougher conflict-of-interest rules as part of any broad crypto market bill, and the enforcement design could become another point of negotiation.

Why the ethics fight is tied to Trump

The debate centers on President Donald Trump’s crypto-related businesses, including meme coin ventures and World Liberty Financial, a company involving his family. Financial disclosures released last month showed Trump earned more than $1.2 billion from crypto businesses last year, according to Decrypt.

Sen. Elizabeth Warren has called for the legislation to prevent the president, vice president, senior officials, members of Congress and their families from profiting from the crypto sector, according to Decrypt. The current draft does not go that far because it excludes officials’ children. Decrypt reported that Donald Trump Jr. and Eric Trump are involved in World Liberty Financial.

The Senate math is tight. The bill would need 60 votes to advance, which means at least 10 Democrats would have to support it if Republicans back it as a bloc. Decrypt reported that many Democrats have already objected to the bill.

For retail investors, the ethics fight matters because it could decide whether the larger crypto bill gets through Congress. The Clarity Act is meant to set federal market rules for much of the crypto industry, giving exchanges, token projects and developers a clearer view of which activities are allowed and which agencies oversee them.

Developer protections stay in the draft

The latest draft also keeps the Blockchain Regulatory Certainty Act, according to Decrypt. That provision would create a safe harbor for non-custodial software developers. Non-custodial means the developer does not hold or control customer funds.

The safe harbor would clarify that those developers are not “money transmitters,” a legal label that can trigger compliance duties for businesses that move money on behalf of customers. Decrypt reported that much of the crypto industry views that language as a key provision.

Digital Chamber CEO Cody Carbone said in a statement that the draft is “a meaningful step toward the Senate vote on the Clarity Act” the group has sought. He added that the organization plans to review the text and give member feedback on possible changes as the bill moves ahead.

The draft may be close to final, according to Decrypt, but the ethics language is still likely to face scrutiny. The main question for lawmakers is whether a temporary ban covering officials and spouses, enforced by the Justice Department, is enough to bring Democrats on board.

This story draws on original reporting from Decrypt.