Republicans Add Ethics Limits to CLARITY Act Amid Crypto Boom

Senate Republicans have updated the CLARITY Act to include new ethics provisions. The revised draft, released by Senator Cynthia Lummis, adds limits on presidential financial dealings with crypto ventures. This comes after the Trump family reportedly generated at least $2.3 billion from various crypto investments.

The new ethics package was negotiated between Lummis and Bernie Moreno (R-Ohio), and includes measures to strengthen law enforcement's ability to combat crypto-related crime. The legislation also outlines how digital assets would be treated during the bankruptcy of a cryptocurrency exchange or custodian, aiming to prevent customer assets from becoming part of a bankrupt company's estate.

Notably, Democrats have not yet signed off on the proposal and are expected to push for changes, particularly objecting to giving the DOJ sole enforcement authority without involving state attorneys general. The revised draft introduces an entirely new section aimed at ensuring that digital assets remain customer property rather than part of a bankrupt company's estate.