Ethics has remained one of the biggest sticking points in negotiations over the Clarity Act, the proposed legislation aimed at establishing a comprehensive regulatory framework for digital as
Ethics has remained one of the biggest sticking points in negotiations over the Clarity Act, the proposed legislation aimed at establishing a comprehensive regulatory framework for digital assets in the United States. That obstacle may now be closer to resolution after the White House agreed to new ethics language backed by President Donald Trump.
According to multiple reports, the proposal would prohibit federal officials—including the president, vice president, and members of Congress—from issuing cryptocurrencies while serving in office. The measure is intended to reduce potential conflicts of interest as lawmakers work toward a broader legal framework for the digital asset industry.
Negotiations over the Clarity Act have stretched on for months, with ethics emerging as one of the final unresolved issues. Lawmakers have debated how to prevent public officials from benefiting financially from digital assets while simultaneously shaping the rules governing the industry.
The latest proposal is designed to address those concerns by setting restrictions on federal officeholders. Although the ethics provision does not directly regulate cryptocurrencies, it could remove a major political hurdle that has delayed progress on the broader legislation.
Another key element of the proposal is its enforcement structure. Rather than assigning oversight to state attorneys general, the proposal would place enforcement authority under the U.S. Department of Justice (DOJ).
Supporters argue that a single federal enforcement agency could provide more consistent oversight nationwide. Critics, however, say states should also have a role in ensuring compliance with the ethics rules.
The enforcement mechanism has already become a point of debate among lawmakers. Senator Angela Alsobrooks, one of the negotiators involved in the Clarity Act, questioned whether the DOJ alone should be responsible for enforcing the provision and indicated that discussions are expected to continue.
The White House has urged Congress to move the legislation forward, arguing that lawmakers have already made significant progress in addressing concerns surrounding the bill.
If approved, the Clarity Act would establish clearer regulatory responsibilities for digital assets and provide a more predictable legal framework for crypto companies operating in the United States. Many industry participants have long argued that regulatory uncertainty has slowed innovation and discouraged institutional participation. While negotiations are not yet complete, the latest agreement suggests lawmakers are making progress toward resolving one of the bill's final sticking points. For the crypto industry, that could bring the United States a step closer to adopting one of its most significant digital asset regulatory frameworks to date.
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