2 weeks ago
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Key Takeaways
- Covered officials would have to surrender their profits and pay a civil penalty of 10% of the proceeds or $500,000.
- Exchanges could be fined up to $250,000 a day for knowingly listing a prohibited token.
- Officials with existing crypto interests could comply through divestment or a blind trust.
- Enforcement authority is still disputed, and the rules would expire in January 2029.
The new ethics summary released by Lummis goes beyond the broad prohibition described in earlier negotiations. It identifies who would be covered, what intermediaries would be expected to do, how existing holdings could be handled and what financial consequences could follow a violation.
The central restriction has not changed. Federal officials, employees and their spouses would be prohibited from issuing or sponsoring a digital asset in exchange for compensation, across the federal government, including the president, vice president, members of Congress and fed...
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