White House adds ethics provision to Senate crypto bill

The White House has agreed to add new ethics language to the Clarity Act ahead of a key vote on the Senate’s cryptocurrency regulation bill scheduled for Tuesday. The amendment, which is part of the broader effort to tighten oversight of digital assets, will prohibit public officials from issuing or sponsoring any form of digital currency. By incorporating this clause, the administration aims to align federal policy with emerging regulatory priorities on cryptocurrency.

Under the proposed language, enforcement would be shared between state attorneys general and the Department of Justice, giving both state and federal authorities the power to investigate and prosecute violations. The provision is intended to curb potential conflicts of interest and prevent officials from leveraging their positions to promote or endorse private digital assets. It comes at a time when lawmakers are debating a comprehensive framework that would establish licensing requirements, consumer protections, and anti-money‑laundering standards for crypto‑related activities.

The addition of the ethics clause is expected to influence the Senate’s deliberations by underscoring the administration’s commitment to regulatory rigor. If the bill passes, the new enforcement mechanism could serve as a model for future federal oversight of digital assets, potentially shaping how public officials engage with the rapidly evolving cryptocurrency market.