CLARITY Act Draft Sets Expiration Date for Crypto Ethics Restrictions

The draft of the CLARITY Act has moved beyond reported political agreement and is now in the hands of lawmakers, who will debate the legislative language. The proposed crypto ethics restrictions would expire on January 20, 2029.

A 616-page working draft published by Punchbowl News combines the Banking and Agriculture committee texts into one package and gives shape to the crypto ethics compromise after days of negotiations. Instead of creating a permanent conflict-of-interest rule, the draft proposes a temporary restriction tied to the end of the current presidential term.

The Department of Justice would be responsible for enforcing the ethics section, which would exempt non-controlling developers from money-transmitter classification.