JUST IN: CLARITY Act forces Trump and covered officials to sell crypto or use a blind trust Updated proposal released by Senate Republicans — Dem support still unclear Adds funding for crypto probes + stablecoin freeze powers

What happened

The Senate Republicans released an updated CLARITY Act proposal that would require former President Trump and other covered officials to either sell their cryptocurrency holdings or place them in a blind trust, while also adding funding for cryptocurrency investigations and granting the Treasury authority to freeze stablecoins.

Confirmed

Global impact / market context

Requiring officials to divest or use a blind trust aims to stop conflicts of interest and boost public confidence, while new funding and freeze powers tighten oversight, potentially changing how crypto firms operate and how investors view the sector.

Analyst inference

Lawmakers are increasing scrutiny of digital assets after high‑profile scandals; this proposal could signal tougher U.S. regulation, prompting investors to reassess risk and valuation of crypto‑related companies.

Analyst inference

What to watch

1. Watch how the congressional debate unfolds, especially whether Democratic lawmakers support the CLARITY Act, because their backing will decide if the divest‑or‑blind‑trust rules become law. Proposed
2. Monitor the details of how a blind trust would be set up for officials’ crypto assets, including management responsibilities, reporting requirements, and oversight mechanisms to ensure transparency. Proposed
3. Observe how the Treasury Department uses its new stablecoin freeze authority—power to temporarily stop trading of a stablecoin—to address risks, which could limit stablecoin liquidity and market activity. Proposed

Evidence

• x.com