Trump Warns Senate to Pass CLARITY Act or Risk Losing Crypto Leadership

President Donald Trump has urged the US Senate to pass the CLARITY Act before its August recess, warning that China and other countries are vying for control of cryptocurrency and artificial intelligence.

In a statement on July 13, Trump emphasized the importance of the legislation, which would establish a federal framework for cryptocurrency trading and issuance. The bill would divide oversight responsibilities between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).

Trump's appeal is part of a broader administration campaign to revive momentum around the CLARITY Act, with Patrick Witt, the administration's top digital-assets adviser, describing the coming days as a 'critical week' for the legislation.

The White House has rejected accusations that Trump's business interests have influenced administration policy, despite his family connections to World Liberty Financial and other cryptocurrency ventures. The Senate Banking Committee has also rejected an ethics amendment proposed by Democrats, who are seeking conflict-of-interest provisions to limit the ability of officials to profit from digital-asset businesses.

Despite these challenges, supporters of the bill warn that failing to pass the measure in the coming weeks would leave little time for another attempt before the midterm elections. The banking industry is also pushing for changes to the framework, particularly its provisions governing stablecoin rewards, with some arguing that such products could draw deposits from traditional financial institutions.

The CLARITY Act has received a boost with the endorsement of the National Organization of Black Law Enforcement Executives (NOBLE), which sees the broader regulatory framework as improving investigative visibility and providing authorities with additional resources for combating financial crime. However, unresolved issues over government ethics, stablecoin rewards, and protections for software developers remain key obstacles to passage.