Senate crypto bill adds proposed ban on officials issuing digital assets

Senate Republicans have revised a digital-asset bill to include a proposed prohibition on presidents and other federal officials issuing or sponsoring cryptocurrencies and related instruments, CNBC reported, citing bill text it obtained. The change adds an ethics-focused limit to the Clarity Act, a measure already under Senate consideration that CNBC described as the first major legislation aimed at governing digital assets.

The updated language would apply beyond the White House, covering federal officials more broadly, according to CNBC. The provision would mark the first limits in the measure on how presidents may profit from crypto, CNBC reported.

What the proposal would do

The restriction targets two forms of involvement: issuing a digital asset and sponsoring one. Issuance is the act of creating or putting a token or other digital asset into circulation. Sponsorship, as described in the reported bill language, would separately address an official’s association with a digital asset even where that official is not the issuer.

Because the measure remains under consideration, the proposal is not law. If enacted in its reported form, the ban would set a federal statutory boundary around officials’ direct participation in digital-asset projects.

The revision is part of the Clarity Act, a broader attempt to establish a legal framework for digital assets. CNBC reported that Republicans updated the measure on Wednesday. The bill’s broader provisions were not detailed in the report, but the addition of limits on official involvement places conflict-of-interest concerns within the legislative debate over crypto regulation.

Why the language matters for crypto policy

Digital assets can be created and distributed by private actors, companies or other sponsors, and their value may be affected by reputation, promotion and perceived official backing. A federal official’s role in issuing or sponsoring such an asset can raise questions about profit, influence and public office.

The proposed ban would address that concern by drawing a line between government service and the creation or sponsorship of crypto products. CNBC reported that the updated text includes presidents among the officials covered, making the provision directly relevant to the highest elected office as well as other federal positions.

The Senate’s consideration of the Clarity Act comes as lawmakers continue to debate how the United States should regulate digital-asset markets. For investors, issuers and trading platforms, the bill is part of a broader effort to define the rules for a sector that has developed faster than many existing regulatory categories.

CNBC reported that the newly updated bill text now contains the proposed official-conduct restriction. The timing and outcome of Senate action on the measure were not specified.

This story draws on original reporting from CNBC.