New provisions limiting the ability of presidents and other federal officials to profit from digital assets have been added to the CLARITY Act, a bill under consideration in the US Senate that includes comprehensive regulations targeting the cryptocurrency market.
According to updated draft legislation obtained by CNBC, US presidents, federal officials, and certain public officials will not be able to issue cryptocurrencies or other digital assets, or sponsor such projects.
Senate Republicans, in an update to the CLARITY Act on Wednesday, included the first legal limits on how US presidents can earn income from the cryptocurrency sector.
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The CLARITY Act, which aims to comprehensively regulate the digital asset market, seeks to determine which institutions will oversee the cryptocurrency sector and under what rules. Newly added ethical provisions aim to prevent public officials from using their positions to profit personally from cryptocurrency or digital asset projects.
If the bill becomes law, U.S. presidents and other federal officials serving in office will face significant restrictions on issuing cryptocurrencies in their own names, sponsoring a digital asset project, or directly profiting from such ventures.
Previously, US President Donald Trump launched his own TRUMP token, which has recently experienced significant declines.
*This is not investment advice.
