Trump May Be Banned From Issuing Tokens If US Senate Clears New Crypto Bill

The US Senate is weighing a landmark cryptocurrency regulation bill that would, for the first time, prohibit presidents and other federal officials from issuing, sponsoring or offering digital assets, marking a significant tightening of ethics rules around the fast-growing crypto industry, The Hill reported. 

Republicans on Wednesday unveiled an updated version of the CLARITY Act, legislation aimed at establishing a comprehensive regulatory framework for digital assets. 

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According to reports, the revised bill includes new ethics provisions designed to prevent senior government officials from financially benefiting from cryptocurrency ventures while in office.

The White House has backed the proposal after agreeing to include the ethics provision during last-minute negotiations. 

Under the measure, all federal officials would be barred from issuing or promoting digital assets, with the US Department of Justice responsible for enforcing the restrictions.

"The administration is committed to working with Congress to see the CLARITY Act advance and has agreed to the most comprehensive and wide-ranging ethics provision in history," a White House official said.

The provision addresses long-standing concerns raised by Democrats over potential conflicts of interest, particularly following scrutiny of President Donald Trump and his family's involvement in various cryptocurrency-related businesses.

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Democrats have consistently argued that elected officials should be prevented from profiting from the digital asset industry while holding public office.

The legislation now enters a crucial phase in the Senate, where bipartisan support remains uncertain. 

Lawmakers face a narrow window to approve the bill before the August recess. 

Policy experts have warned that failure to pass the legislation within the next few weeks could significantly delay its prospects, potentially pushing any final action until after the US midterm elections.

Senate Majority Leader John Thune acknowledged negotiations remain fluid, saying Republican leaders are still working to secure enough Democratic votes to move the bill forward.

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