Revised US CLARITY Act Adds Ethics Curbs on Officials' Crypto Activity

Among the added restrictions: federal elected officials, federal judges, and their spouses would have to divest significant stakes in companies that issue digital assets or move those holdings into a blind trust. Presidents, vice presidents, members of Congress, federal judges, and their spouses would be barred from issuing or sponsoring digital assets while in office. State attorneys general would gain authority to enforce the ethics rules alongside the Justice Department, including the ability to sue crypto exchanges.

According to CoinDesk, the new draft would compel divestiture and let state attorneys general sue to enforce the ethics provision. A separate CoinDesk report said Trump's digital assets adviser spoke at a Washington event the day after the compromise language was released, describing the concession in terms of ethics powers given up.

Cointelegraph reported that while the concession clears one obstacle, 18 state attorneys general contend that the revised legislation would weaken state oversight.

The market structure bill fell short of the 60 votes needed to advance in the Senate, with Bitcoin dipping as the result became clear.