Former President Donald Trump has called on the Senate to pass the CLARITY Act, warning that failure to act could allow China to dominate both the cryptocurrency and artificial intelligence sectors. This plea comes as the Senate reconvenes, with a short window until its upcoming recess starting August 8. Lawmakers have approximately four weeks to advance the proposed legislation, which many view as its last opportunity for this year.
Trump's appeal, shared on Truth Social, also acknowledges the late Senator Lindsey Graham as a supporter of the bill, who passed away recently. He highlighted the urgency of the situation, stating, “China, and many other countries, would like to take complete and total control of this major financial 'happening', as well as A.I., where we are now leading, but where they are fighting hard. Don’t let China win on either subject!!!”
This warning underscores the ongoing rivalry between Washington and Beijing regarding digital currencies and artificial intelligence. The CLARITY Act builds upon the GENIUS Act, which marked the first significant US crypto legislation signed into law last July. The Digital Asset Market Clarity Act previously passed the House with a vote of 294-134 in July 2025, garnering support from several Democrats, and subsequently cleared the Senate Banking Committee with a narrow 15-9 margin.
To be passed, the bill requires 60 votes in the Senate, a threshold that has become increasingly difficult to reach due to ongoing political disputes. Democrats are advocating for safeguards against conflicts of interest related to Trump’s own crypto business interests. His latest financial disclosures indicate that cryptocurrency is his largest income source, accounting for over $1 billion from his family’s ventures, including a significant sum from World Liberty Financial.
Despite the bill's potential, support from the two Democrats on the committee hinges on negotiations, particularly regarding developer liability protections for non-custodial software. The recent passing of Graham and the absence of Senate Minority Leader Mitch McConnell due to health issues complicate the voting landscape for Republicans, increasing the imperative for bipartisan cooperation.
Experts are divided on the probability of the bill’s passage. Kristin Smith, President of Solana Policy Institute, asserts that momentum is building behind the bill, while Alex Thorn, Head of Research at Galaxy Digital, has reduced the odds to 50%, citing a dwindling timeframe and the competition for Senate floor time. The prediction market Polymarket reflects this uncertainty, with odds of passage dropping to about 24% from over 70% earlier this month.
Meanwhile, amid these developments, Wyoming-based crypto bank Custodia has escalated its legal battle against the Federal Reserve, seeking Supreme Court review of its denied master account application, a move that highlights the ongoing complexity of the regulatory landscape.
This material is informational and not financial advice.
