The Senate's newest crypto bill would bar Trump from issuing his own token — Democrats aren't buying it

Republican Senator Cynthia Lummis of Wyoming unveiled an updated draft of the CLARITY Act on Wednesday, July 22, 2026 — the core bill governing US digital asset market regulation. The key change: for the first time in a Republican-authored version of the text, the draft includes ethics restrictions for federal officials, including the president.

What the Amendment Actually Bans

Under the updated text, the president, vice president, members of Congress, federal judges, and other covered officials — along with their spouses — would be barred from issuing or sponsoring cryptocurrency and other digital assets for compensation while in office. Companies would also be barred from listing digital assets issued or sponsored by sitting government officials.

For officials who already held digital assets before taking office, the bill includes a safe harbor: they can comply by placing those holdings in a qualified blind trust, selling them, or a combination of both.

“It's time to land this plane. This is about helping law enforcement fight illicit finance.”

— Cynthia Lummis (R-WY), July 22, 2026

Quote source: CoinDesk, July 22, 2026.

Penalties, Sunset Clause, and Who Enforces It

Violations carry penalties of up to $250,000 per day. Enforcement would rest solely with the US Department of Justice — the arrangement Republicans and the White House are insisting on, while Democrats had pushed for state attorneys general to have enforcement power too. The ethics provision itself is temporary: it automatically sunsets on January 20, 2029, unless separately renewed.

“This DOJ enforcing an ethics provision? That's an unserious offer, and I wouldn't support the bill if that's the language.”

— Angela Alsobrooks (D-MD), July 22, 2026

Quote source: CoinDesk, July 22, 2026.

An Important Detail: This Is Actually Round Two

One important clarification: this isn't the first attempt to add ethics restrictions to the CLARITY Act. On May 14, 2026, the Senate Banking Committee voted 13-11 to reject a similar amendment sponsored by Democratic Senator Chris Van Hollen of Maryland. That vote fell strictly along party lines — every Republican opposed it, every Democrat supported it. The underlying CLARITY Act itself advanced 15-9 in that same session, with two Democrats, Ruben Gallego of Arizona and Angela Alsobrooks of Maryland, joining Republicans. Lummis's new version differs in that Republicans themselves wrote it — but judging by Democrats' reaction to the DOJ-only enforcement language, it's far from satisfying everyone.

Why It Matters

Pressure over ethics restrictions has been building for months and is tied directly to President Donald Trump's and his family's crypto activity — by his own financial disclosures, Trump earned more than $1 billion from crypto interests last year alone, including through a stake in World Liberty Financial. Passing the bill requires 60 votes in the Senate, meaning at least 10 Democratic votes — and with roughly two weeks left before the chamber breaks for its August recess, this window may be the last realistic chance for a vote this year.

This material is for informational purposes only and is not investment advice.