US Senate Advances Clarity Act with Trump‑Backed Crypto Ethics Rule

The U.S. Senate has released the full text of the Digital Asset Market Clarity Act, a 616‑page bill that would set a comprehensive federal framework for digital assets. The proposal splits regulatory authority between the SEC and the CFTC, requires exchanges to register, imposes AML and consumer‑protection duties, and defines token classification based on decentralisation.

A central contentious element is the ethics provision. It would bar federal officials and their spouses from issuing or sponsoring digital assets and prohibit platforms from listing such assets. The rule, endorsed by President Donald Trump, is described by officials as “the most aggressive ethics language in U.S. history” and would be enforced by the Department of Justice. The restrictions are temporary, set to expire on 20 January 2029, coinciding with the end of Trump’s term.

Democratic senators and progressive groups have criticized the draft as lacking sufficient safeguards and have targeted Senator Kirsten Gillibrand for perceived conflicts. The bill still requires a 60‑vote cloture threshold in the Senate and must be acted on before the August recess. Market observers note a short‑term rally in Bitcoin and other cryptocurrencies following reports of Trump’s agreement on the ethics clause.