The revised CLARITY Act has introduced new rules that would prohibit the president, vice president, and other government officials, along with their spouses, from giving or supporting digital asset returns while in office.
The proposal is part of a larger rewrite of rules that also expands oversight of digital trading markets by the Commodity Futures Trading Commission (CFTC).
However, the code of conduct is among the most prominent additions when it comes to the high level of scrutiny of crypto companies linked to government authorities.
New laws target government-backed digital assets
The amended bill creates a new code of conduct that covers “public servants or employees” and their wives.
Instead of creating a new definition, it adopts the existing federal definition, which includes it The President and Vice President along with other government officials.
Under the proposal, creditors are not allowed to provide or support digital assets in exchange for compensation during their tenure.
The bill defines “issue” as including the creation, creation, introduction, or regulation of the first sale or distribution of digital assets. It also defines “sponsor” broadly, covering agreements to support, maintain, or publicly endorse a trademark.
This includes allowing use of a person’s name, likeness, likeness, or position in its creation or promotion.
If a digital asset is found to have been provided or supported in violation of the provisions, it may not be offered for sale by a digital asset intermediary under the provision.
The restrictions would only apply if the employee is still in office and is also working with the officer’s spouse at the time.
The decision comes as Trump’s crypto ventures come under scrutiny
Although the revised CLARITY Act does not mention President Donald Trump or any other crypto project, its timing may attract attention.
Trump and his family have increased their involvement in the digital economy over the past year through ventures including TRUMP memecoin and other crypto-related ventures. These actions have drawn criticism from moral experts and policymakers.
He asked if elected officials should benefit from digital services while working.
The proposal, however, is not an empty ban on cryptocurrency ownership. The law allows investors to continue to hold digital assets as investment funds, subject to existing disclosures and interest rate mismatches.
Good behavior can also be temporary. Restrictions are They are expected to go into effect on January 20, 2029, unless Congress extends them.
The ethics rules accompany the CLARITY Act reform
The ethics language makes up only one part of the extended version of the CLARITY Act.
The revised proposal adds a new framework for CFTC-regulated by the CFTC, including exchanges, brokers, dealers, and regulators.
It resets federal control over registered participants in digital asset markets when maintaining federal enforcement authority over fraud and applicable federal lawss.
Elsewhere, the bill adds some new features allowing courts to order confiscation, freezing, burning, and reimbursement of payments in certain circumstances..
Also, it introduced other regulatory and technical changes related to the GENIUS Act.
Brief Summary
- The amended CLARITY Act would prohibit public officials and their spouses from issuing or supporting digital assets for payment while in office.
- The amendments expand the CFTC’s powers over digital asset markets. It introduces stablecoin innovation, enforcement, and market management.
