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- Republicans released an updated Clarity Act, which includes ethics provisions for federal officials and bans on crypto being used for illicit transactions.
- Democrats say the Justice Department shouldn't be the regulator to enforce a ban on elected officials issuing crypto.
- Senators could vote on the bill in the next two weeks before leaving Washington for most of August.
Presidents and other federal officials would be banned from issuing or sponsoring cryptocurrency and other digital assets under newly updated legislation the Senate is considering.
Republicans on Wednesday re-released a measure — known as the Clarity Act, major legislation to govern the broader digital asset market. Sen. Cynthia Lummis, R-Wyo., the bill's lead sponsor, provided CNBC with its text, which now includes the first limits on how presidents may profit off of crypto.
The legislation would tap the Department of Justice to enforce the ban. The agency could levy a fine of up to $250,000 per day for violators.
President Donald Trump, signed off on the ethics section of the bill, Sen. Bernie Moreno, R-Ohio, one of the measure's supporters, told CNBC. Trump made about $1.2 billion in crypto-related income during his first year back in the White House, according to a recent disclosure.
Trump's 2025 crypto proceeds include about $580 million connected with World Liberty Financial, the company co-founded by members of Trump's family that issues the WLFI governance token and USD1 stablecoin. World Liberty launched USD1 in March 2025, after Trump began his nonconsecutive second term as president.
It's not clear whether the bill will be able to garner the Democratic support needed to get 60 votes to clear the Senate. Democrats, including Sen. Angela Alsobrooks, D-Md., have criticized proposals that would leave the DOJ in charge of enforcing ethics provisions.
Alsobrooks on Wednesday slammed having the DOJ rather than state attorneys general leading the oversight.
"Look at this Department of Justice," she told reporters Wednesday at the Capitol. "They're completely unserious, first of all, and it's just stone crazy to rely on them for anything. A lawless Department of Justice cannot oversee this. So, I think having the attorneys general as a backstop is going to be really important."
But Senate Majority Leader John Thune, R-S.D., said he expects the Senate will quickly consider the measure.
"It'll get a vote, not sure when yet but in the next couple weeks," Thune told reporters Wednesday at the Capitol.
Companies including Coinbase and Ripple have pressed for a national law to create a regulatory structure around crypto.
The banking industry has opposed certain aspects of the crypto industry, including issuing rewards that it considers similar to interest earned on bank accounts. A group of banking groups, including the American Bankers Association and Financial Services Forum, on Wednesday after the updated crypto bill was released said the measure "still puts at risk the local lending that drives economic activity in the U.S."
— Irit Skulnik and Karen James Sloan contributed to this report.
