Trump Urges Senate to Pass Clarity Act for Crypto Regulation
President Donald Trump has called on the U.S. Senate to advance the Clarity Act, a major bill that would create the first federal framework for cryptocurrency regulation.
Why the Clarity Act Matters Now
Congress has returned to Washington after the Fourth of July recess. Lawmakers have only a few weeks left to pass several important bills, including the Clarity Act. The House already approved its version last year, and Senate committees have moved their versions forward in recent months. Updated bill text is expected this week.
Trump’s Tribute to Senator Lindsey Graham
On Monday, President Trump urged quick passage of the bill in honor of Senator Lindsey Graham, who passed away unexpectedly over the weekend.
“In honor of Senator Lindsey Graham, a big supporter, the U.S. Senate should pass the Clarity Act,” Trump wrote on Truth Social. He warned that China and other countries want to dominate crypto and AI, areas where the U.S. currently leads.
Although Graham was not a lead negotiator on crypto bills, he supported key measures. These include stablecoin legislation and a resolution to repeal an IRS crypto tax reporting rul
Strong Support from Key Lawmakers
Senator Cynthia Lummis (R-Wyo.), a leading voice for crypto legislation, backed Trump’s call.
“Couldn’t agree more with @POTUS,” Lummis posted on X. She described Graham as a friend who cared deeply about American leadership in digital assets.
Patrick Witt, the White House’s top crypto adviser, also stressed the need for speed:
“A reminder of the incredible amount of hard work that has gone into this bill, but also of the time we’ve already lost. We cannot afford to delay any longer.”
Ethics Provision Remains a Major Hurdle
One key challenge is whether to add strong ethics rules to the bill. These rules would limit how presidents, vice presidents, members of Congress, and their families can profit from digital assets while in office.
Current bill text does not include these ethics provisions. Senate Democrats, led by Senator Elizabeth Warren, are pushing hard for them. Warren wrote to Senate leaders warning that without these safeguards, the bill would be “a flagrant giveaway to the President and his family.”
Anti-corruption groups also called for clear language banning senior officials, their spouses, and children from profiting from crypto ventures.
What Happens Next?
Negotiators from both parties continue to work on the final text. The Senate could vote on the updated Clarity Act soon, after which it would return to the House for approval.
The coming weeks will be critical for the future of cryptocurrency regulation in the United States.
