Trump Administration Approves Crypto Ethics Rules for Federal Employees

On July 21, 2026, President Donald Trump signed new ethics rules prohibiting federal employees from directly issuing cryptocurrencies. This measure is regarded as a decisive step toward removing the final obstacle to the enactment of the 'Crypto Clarity Act' and is the result of long-standing negotiations between the administration and Congress.

The ethics rules approved by President Trump fundamentally reshape how government officials interact with the digital asset market, strictly blocking public officials from issuing their own tokens for private gain. This was one of the key conditions agreed upon with Republican negotiators to ensure the passage of the Crypto Clarity Act in the Senate, and it includes specific enforcement standards to ensure the integrity of the federal government.

The approval of these ethics rules is the most significant progress toward the Crypto Clarity Act crossing the Senate threshold and will serve as an opportunity to demonstrate the administration's transparency.

The Department of Justice (DOJ) has been designated as the lead agency responsible for enforcing these rules. While maintaining the stance of the 'Ending Regulation by Prosecution' memorandum released by the DOJ in April 2025, it signals uncompromising law enforcement regarding inappropriate crypto-related activities by individual employees. In particular, the DOJ plans to shift away from the broad investigative methods previously targeting crypto exchanges or mixing services and will now focus its investigative power on preventing internal government corruption and conflicts of interest.

The DOJ's Enforcement Role and Policy Changes

Patrick Witt, White House Crypto Advisor, stated that the Department of Justice will monitor the integrity of the public sector as the enforcement agency for this measure. Industry insiders expect a Senate vote on the Crypto Clarity Act to take place before the August congressional recess, now that these clear ethical guidelines have been established. Advisor Witt emphasized that these regulations will enhance the federal government's credibility while increasing predictability for the industry.

• A total ban on federal employees directly issuing or selling cryptocurrencies
• Establishment of a centralized ethics regulation enforcement and monitoring system through the Department of Justice (DOJ)
• Formal inclusion of conflict-of-interest prevention clauses within the Crypto Clarity Act
• Disclosure of digital asset holdings by public officials and restrictions on their participation in policy-making

However, Democratic lawmakers continue to raise doubts and voice opposition regarding the effectiveness of this agreement. Specifically, they pointed out that the scope of certain conflict-of-interest restrictions is insufficient, emphasizing that discussions between the parties on the details are still ongoing despite the President's approval. Democratic negotiators are arguing for lower caps on the amount of cryptocurrency public officials can hold and for stricter criteria for exclusion from the policy-making process.

The background for the introduction of these regulations lies in the controversy surrounding Deputy Attorney General Todd Blanche's personal cryptocurrency holdings in January 2026. At the time, senators warned that asset holdings by high-ranking officials could compromise policy neutrality and demanded a strict separation between officials' personal asset management and their public duties. These past conflicts became a decisive factor in including these ethics regulations as an essential supplementary clause of the Crypto Clarity Act.

Industry Expectations and the Final Hurdle Toward Legislation

The cryptocurrency industry views these moves by the federal government as likely to increase market stability. Major organizations such as the Digital Chamber are responding to regulatory pressure at the state level, including filing lawsuits against cryptocurrency transaction taxes introduced by some state governments like Illinois. In this context, the establishment of unified ethical standards and a clear legal framework at the federal level is evaluated as playing a positive role in enhancing the industry's credibility.

Eyes are now focused on whether a Senate vote will occur before the August recess. With the White House reaching a final agreement on the wording of the ethics regulations, the possibility of the Crypto Clarity Act passing is higher than ever, but the final key will be how many Democratic votes can be secured. Market analysts predict that if this legislation succeeds, the cryptocurrency regulatory environment in the United States will improve dramatically.

Intense political maneuvering is expected within the Senate in the time remaining before the August recess. Global market participants are closely watching to see if this "ethics card" presented by the Trump administration can dispel the opposition's concerns and set a new milestone for the cryptocurrency industry.