A newly circulated draft of the Clarity Act would prohibit President Donald Trump and other senior officials from launching or profiting from cryptocurrency ventures—but the restriction comes with a notable expiration date of 2029, effectively lifting the ban after Trump's current term ends.
What the Draft Proposes
The latest version of the market-structure legislation includes ethics provisions that would bar sitting officials and their spouses from issuing digital assets while in office. The measure appears designed to address mounting concerns about conflicts of interest at the highest levels of government, particularly as members of the executive branch increasingly embrace crypto projects.
Beyond the ethics language, the draft carves out protections for non-custodial software developers, shielding builders who do not take control of user funds from certain regulatory obligations. That provision reflects a longstanding priority among industry advocates who argue that writing code should not expose developers to the same requirements imposed on financial intermediaries.
The ban on officials issuing crypto assets sounds sweeping—until you notice it quietly disappears in 2029.
The Catch in the Fine Print
The most striking feature of the proposal is its built-in sunset. Rather than establishing a permanent prohibition, the ethics restriction would lapse in 2029, meaning it would only apply during the remainder of the current administration. Critics are likely to see the time limit as a loophole that blunts the rule's long-term impact.
Enforcement is another point of contention. Under the draft, responsibility for policing violations would rest entirely with the Department of Justice, leaving no independent or alternative mechanism to hold officials accountable. That concentration of authority raises questions about how vigorously the provision would actually be applied.
Key elements of the draft include:
- A ban on officials and spouses issuing digital assets, expiring in 2029
- Legal protections for non-custodial developers
- Sole enforcement authority handed to the DOJ
Why It Matters
The Clarity Act represents one of the most significant attempts yet to define how digital assets are regulated in the United States, and the ethics language arrives amid heightened scrutiny of political figures involved in crypto. How lawmakers ultimately resolve the sunset clause and enforcement structure could determine whether the provisions serve as a meaningful safeguard or a largely symbolic gesture.