Key facts
- Senate Republicans have released a revised draft of the CLARITY Act.
- The draft includes an ethics provision banning covered elected officials from engaging in crypto.
- This provision includes the president, vice president, members of Congress, federal judges, and their spouses.
- Covered officials must divest crypto holdings or place them in a blind trust.
- The provision sunsets on January 20, 2029.
- Democrats have expressed skepticism about the bill's enforcement mechanisms.
- Data from Polymarket suggests a 39% chance the bill will become law this year.
Senate Republicans have unveiled the latest draft of the CLARITY Act, incorporating an ethics provision that temporarily bans covered elected officials, including the president, from engaging in cryptocurrency-related activities. This provision, which includes requirements for divestment or placement in a blind trust, is set to expire on January 20, 2029. The move follows an ethics agreement by President Donald Trump, who reportedly earned up to $1.4 billion from crypto last year. However, Democrats have expressed reservations about the bill's enforcement mechanisms, with Senator Angela Alsobrooks calling the proposed Department of Justice enforcement "wild and unserious." Despite the inclusion of the ethics provision, Democratic support remains uncertain, and prediction markets indicate a 39% chance of the bill becoming law this year, down from a recent high.