Republicans released the latest text of comprehensive cryptocurrency legislation after months of deliberations, setting the stage for a potential full Senate vote as soon as next week. The 616-page bill combines versions passed by the Senate Agriculture Committee and Senate Banking Committee over the past year, addressing a key sticking point over ethics safeguards for federal officials profiting from digital assets while in office. The ethics debate intensified after financial disclosures released last month showed President Trump received millions of dollars tied to World Liberty Financial, his family's cryptocurrency company, alongside controversy over Trump's memecoins.
Bill Establishes Ethics Restrictions with 2029 Sunset Provision
The latest bill text includes an ethics section that blocks public officials, employees, and their spouses from issuing or sponsoring digital assets, while still permitting investment in digital assets. The Justice Department is designated to enforce the provision. The ethics section details a sunset provision stating it will have "no force and effect on and after noon on January 20, 2029." Sen. Angela Alsobrooks stated in a statement on Tuesday that DOJ enforcement of an ethics provision is "an unserious offer" and expressed opposition to supporting the bill with that language, arguing state attorneys general need involvement.
Blockchain Regulatory Certainty Act Creates Safe Harbor for Developers
The bill incorporates the Blockchain Regulatory Certainty Act, which creates a safe harbor for non-custodial developers by clarifying they are not money transmitters. The provision has support from much of the crypto industry, who say it provides legal certainty for software developers and helps prevent innovation from moving offshore. Law enforcement groups and Catholic leaders have warned the provision could weaken safeguards to combat human trafficking and could hinder investigations.
Industry Groups Support Bill as Senate Vote Approaches
Digital Chamber CEO Cody Carbone called the bill text a "meaningful step" in a statement on Wednesday, stating it represents the best chance for durable market structure law to allow America to be the global leader in digital assets. Blockchain Association CEO Summer Mersinger said in a statement they are reviewing the text and are grateful to senators and staff on both sides of the aisle who invested significant time in reaching this moment. The bill would need Democratic support to pass a full Senate vote, with uncertainty remaining over whether the ethics provisions have enough backing. If the Senate passes the bill in the coming weeks before the August recess begins on Aug. 7, it would move to the House for a vote.
FAQ
What does the Senate Clarity Act ethics provision restrict?
The ethics section blocks public officials, employees, and their spouses from issuing or sponsoring digital assets while still permitting investment in digital assets. The provision includes a sunset clause ending its effect at noon on January 20, 2029, with the Justice Department designated as the enforcement authority.
Why did the Blockchain Regulatory Certainty Act become controversial?
The provision creates a safe harbor for non-custodial developers by clarifying they are not money transmitters, which the crypto industry supports as providing legal certainty. However, law enforcement groups and Catholic leaders warned it could weaken safeguards to combat human trafficking and hinder investigations.
