New GOP crypto bill would ban Trump, officials from issuing digital assets until 2029

Topline

New Trump-approved draft language in the cryptocurrency bill known as the Clarity Act would temporarily ban public officials or employees from issuing or sponsoring cryptocurrencies until 2029—but the new bill still faces steep opposition from Democrats.

Key Facts

• A new draft of the 600-plus page Clarity Act, obtained by multiple outlets, would enforce new ethics rules on public officials around cryptocurrency—in particular, banning officials, as well as their spouses or employees, from issuing or sponsoring any “digital asset” while they are serving in the role.

• The bill would also bar companies from listing a digital asset issued or sponsored by public officials, and require politicians to place their earlier crypto assets in a blind trust or divest them during their term in office.

• The language could potentially bar President Donald Trump from further cashing in on his crypto businesses, which netted him an estimated $1.4 billion last year.

• The White House has previously indicated Trump would still sign a bill with the Republican-authored ethics provision, calling it in a statement to CoinDesk “the most comprehensive and wide-ranging ethics provision in history.”

• However, the bill would also task the attorney general with enforcing the ethics rules and bar state attorneys general from enforcing the rules, and congressional Democrats have signaled they would not support handing enforcement over to the current Justice Department.

• The ethics provision is also scheduled to sunset in 2029, removing the restrictions in less than three years.

Crucial Quote

Sen. Angela Alsobrooks, D-Md., one of the Democrats who voted to advance the bill out of committee earlier this year, told reporters she would not support the current version. Speaking at a Semafor conference on Wednesday, Alsobrooks said handing enforcement over to the Justice Department was “wild and unserious and stone crazy,” adding, “it’s an absolute that we cannot completely rely on the DOJ, given what we’ve seen of their inability and their unwillingness to enforce the law.” Instead, Alsobrooks suggested empowering state-level attorneys general to enforce the rules.

What to Watch For

The Senate only has days to move forward with a vote on the Clarity Act before Congress leaves for its August recess. No Democrats have come out on record supporting the bill so far, making it unlikely it would reach the 60 votes needed to advance.

Further Reading

• Forbes: Trump Is Making Three Times As Much In White House As He Did In Business
• Forbes: ‘I’m Now Broke’: Meet The Investors Who Lost Billions Buying Trump Stocks And Crypto