New provisions restricting the ability of presidents and other federal officials to profit from digital assets have been added to the CLARITY Act, a bill under consideration in the U.S. Senate that would establish broad rules for the cryptocurrency market.

According to updated draft legislation obtained by CNBC, U.S. presidents, federal officials and certain public officials would be barred from issuing cryptocurrencies or other digital assets, as well as from sponsoring such projects.

Senate Republicans added the provisions to the CLARITY Act in an update on Wednesday. The additions would represent the first legal limits on how U.S. presidents can earn income from the cryptocurrency sector.

The CLARITY Act is intended to create a comprehensive regulatory framework for the digital asset market, including determining which institutions would oversee the cryptocurrency sector and under what rules. Central to the legislation is the longstanding question of whether certain digital assets should fall under Securities and Exchange Commission oversight as securities or under Commodity Futures Trading Commission oversight as commodities—a jurisdictional dispute that has shaped U.S. crypto regulation for years. The newly added ethics provisions are designed to prevent public officials from using their positions to personally profit from cryptocurrency or digital asset projects.

If enacted, the bill would impose significant restrictions on sitting U.S. presidents and other federal officials, including limits on issuing cryptocurrencies in their own names, sponsoring digital asset projects or directly profiting from such ventures.

U.S. President Donald Trump previously launched his own TRUMP token, which has recently recorded significant declines. Members of the Trump family have also been publicly associated with World Liberty Financial, a decentralized finance venture, adding to the family's involvement in the cryptocurrency sector.