Senate Republicans have revised the Clarity Act to include new ethical guidelines. These rules would prevent federal employees from personally benefiting financially from cryptocurrencies.
On Tuesday, Senate Republicans unveiled a revised version of the Digital Asset Market Clarity Act. The updated bill now includes a comprehensive ethics section preventing federal officials from personally profiting from digital assets while they hold office.
Senator Cynthia Lummis believes this is the point where President Trump would accept limitations stricter than those already in place. She urged the Senate to approve the bill quickly.
As a researcher following this situation, I’ve found that the ethical guidelines being developed are currently the result of discussions between the White House and Republican senators. So far, Democrats haven’t been included in these negotiations.
Clarity Act Ethics Ban Targets Federal Officials
The new law prevents the President, Vice President, members of Congress, federal judges, and their spouses from creating or promoting digital assets if they are paid for doing so.
The new rule applies to all parts of the government. Any official who currently owns cryptocurrency will need to either sell it or put it into a trust where they have no control over the investments.
This event will be remembered as a time when a president acted with greater integrity than legally necessary. The new agreement prohibits all federal employees – even the President – from personally profiting through the creation or promotion of digital assets, and includes strong measures to ensure it’s followed.
— Senator Cynthia Lummis (@SenLummis) July 22, 2026
Reporter Eleanor Terrett pointed out that the rule is set to expire on January 20, 2029, meaning it’s not a permanent change. The new bill also clarifies that it won’t interfere with current laws regarding conflicts of interest, securities, or fraud.
Enforcement Powers and Disclosure Rules Take Shape
Under the current proposal, the Department of Justice would be able to take legal action against anyone who violates the rules. This includes suing cryptocurrency exchanges that deliberately list tokens connected to individuals who are prohibited from owning them.
As an analyst, I’m seeing that exchanges could be penalized up to $250,000 for each violation, *per day*. And for individuals who break these rules, the consequences are even steeper. They could be forced to give up any profits made from the violation, plus face a civil fine of either 10% of their compensation or $500,000 – whichever is greater.
New rules would require government officials to disclose any cryptocurrency transactions exceeding $1,000. According to Terrett, Democrats are opposing a plan that would give the Department of Justice complete control over enforcing these regulations, believing state attorneys general should also be involved.
Bipartisan talks over the enforcement section are expected in the coming days.
Following discussions with industry experts this morning, Senate Republicans have released a revised version of the Clarity Act.
The updated document covers important topics like ethical considerations, BRCA-related issues, and other items we’ve been monitoring.
— Eleanor Terrett (@EleanorTerrett) July 22, 2026
Other Provisions Shape the Broader Bill
Aside from ethical considerations, the bill largely remains the same as it was when approved by the Senate Banking Committee in May. Notably, the Blockchain Regulatory Certainty Act—which shields developers who don’t hold customer funds from being labeled as money transmitters—is still included.
The Lummis-Grassley amendment is still in place, meaning people who intentionally help illegal transactions can face criminal charges.
The Keep Your Coins Act continues to safeguard people’s ability to manage their own cryptocurrency. The new rules for stablecoins maintain the agreement reached by Senators Tillis and Alsobrooks: stablecoins won’t earn interest on money just sitting there, but users can still earn rewards through transactions.
Law enforcement is getting more resources to investigate cryptocurrency crimes and track digital currencies through new funding and advanced tools. A new cyber center will focus on threats coming from countries like North Korea and Iran, and a special task force – made up of both government and private sector experts – will work to combat crypto fraud.
The proposed law includes bankruptcy measures designed to protect customers’ money if a cryptocurrency exchange fails. This is intended to avoid situations like the one that occurred with FTX, where customer funds were mixed with company assets.
Within one year of the law being passed, the Government Accountability Office would need to examine its ethics guidelines. These new rules would go into effect either one year after the law is passed, or 60 days after specific instructions for implementing them are finalized—whichever happens sooner.
Senator Lummis presented the deal as evidence that strong ethical guidelines and advancements in the world of digital assets aren’t mutually exclusive – they can actually progress at the same time.
2026-07-23 07:25