CLARITY Act Proposes Ban on Public Officials Issuing Digital Assets

US lawmakers have released proposed text for the Digital Asset Market Clarity (CLARITY) Act, which includes unprecedented ethics provisions. The bill would bar all US federal officials, including President Donald Trump, from issuing or sponsoring digital assets until January 20, 2029. This ban would apply to public officials and their spouses, as well as employees of crypto platforms that list assets issued by federal officials.

The White House described the provision as 'the most comprehensive and wide-ranging ethics provision in history.' Senator Cynthia Lummis, a key advocate for the bill, noted that this ban would only be temporary, expiring on the day Trump's second term as president ends. The US Attorney General will largely be responsible for enforcing the ban.

Some lawmakers have expressed reservations about the enforcement of ethics provisions. Senator Angela Alsobrooks stated that she wouldn't support the bill if the Department of Justice were behind enforcement, but would continue working to reach an agreement that holds officials accountable.