CoinDesk
A final working draft of the Digital Asset Market Clarity Act is circulating as Senate Republicans prepare their next push to pass the crypto market structure bill. The text adds a ban on direct crypto ties for the president and other senior officials, but the restriction is set to expire in 2029 and would place the Justice Department in charge of related ethics complaints.
Why it matters
The bill combines work from the Senate Banking and Agriculture committees with new provisions on investor protection, federal preemption, provisional registration and commodity pool operators. The Blockchain Regulatory Certainty Act also remains intact, which would shield developers who do not control user assets from being treated as money transmitters.
The ethics section is central to the negotiations because Democrats have tied their support to limits on government officials' crypto involvement. Their concerns have intensified after disclosures that President Donald Trump earned more than $1 billion from crypto interests last year and retains ties to World Liberty Financial.
Market impact
Senate passage requires at least 60 votes, meaning Republicans need support from at least 10 Democrats. Majority Leader John Thune intends to pursue floor action before the summer recess, with the first week of August viewed as the last realistic window for normal progress before lawmakers turn toward the midterm elections.
For DeFi, preserving the non-custodial protections would reduce a major compliance risk. For the broader market, the next signal is whether Democrats receive the draft in time to negotiate the ethics language and whether the temporary provision can attract enough votes to move the bill forward.
Frequently asked questions
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What does the latest Clarity Act draft change for government officials?
It adds a ban on direct crypto ties for the president and other senior officials. The provision is set to expire in 2029, with the Department of Justice handling related ethics complaints.
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Why is the ethics provision a major obstacle in the Senate?
Many Democrats have made restrictions on government officials' crypto involvement a condition of support. Their concerns have intensified after disclosures about Donald Trump's crypto interests.
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How would the draft affect non-custodial DeFi developers?
The Blockchain Regulatory Certainty Act remains in the draft. Developers who do not control user assets would not be treated as money transmitters under the proposed framework.
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How many Democratic votes does the Clarity Act need?
The Senate generally requires 60 votes for major legislation, so Republicans need at least 10 Democratic votes to pass the bill.
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When is the key deadline for Senate action on the bill?
Majority Leader John Thune intends to pursue floor action before the summer recess. The first week of August is viewed as the last realistic window for normal progress before lawmakers focus on the midterm elections.
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