- Trump is pressing the Senate to pass the CLARITY Act before the August recess as time runs short.
- Lindsey Graham’s death and McConnell’s absence have made Senate approval more difficult.
- Lawmakers remain divided over crypto rules, ethics safeguards, and developer protections.
President Donald Trump is urging the Senate to move quickly on the CLARITY Act before lawmakers leave for the August recess, arguing that delays could hurt the United States’ position in digital assets and artificial intelligence. In a post on Truth Social, Trump said Congress should approve the legislation as lawmakers work against a narrowing legislative window.
Trump said the bill is part of a broader effort to strengthen the country’s leadership in emerging technologies and financial innovation. He warned that China and other countries are moving aggressively in those areas, adding to pressure on Senate leaders as negotiations over the legislation continue.
Graham’s Death Adds New Urgency
The renewed push comes after the death of Senator Lindsey Graham, a Republican who had supported efforts to establish clearer rules for the cryptocurrency industry. His death leaves Senate Republicans with a narrower working majority as they seek bipartisan backing for the CLARITY Act.
The challenge has grown with Senator Mitch McConnell still away from the Senate while recovering from illness. His absence leaves Republicans with less flexibility as leaders try to secure the 60 votes needed to advance the legislation, making Democratic support even more important.
Senate Negotiators Race Against Time
Senate staff are expected to release a merged draft of the CLARITY Act this week, combining proposals from the Banking and Agriculture committees. The revised bill adds more than 70 pages of changes, including stronger consumer protections and other bipartisan revisions.
White House crypto adviser Patrick Witt described the week as a key moment for the legislation, saying Congress has already lost valuable time and should move quickly to complete work on a regulatory framework for digital assets.
Several issues remain unresolved. One of the biggest is the Blockchain Regulatory Certainty Act, which is included as Section 604 of the bill. Supporters say the provision would protect non-custodial software developers, while critics argue it could make it harder for authorities to investigate illicit activity on blockchain networks.
Ethics Debate Clouds Passage Odds
Another point of disagreement is a set of ethics provisions linked to President Donald Trump’s cryptocurrency businesses. Negotiators are still working on conflict-of-interest safeguards, with lawmakers divided over how those measures should be applied.
Despite those differences, more than 200 companies have urged Senate leaders to move ahead with the legislation, saying it would provide a clearer federal framework for digital assets.
Some analysts remain cautious about the bill’s prospects. Galaxy Digital recently lowered its estimate for the bill’s chances of passing to 50%, citing unresolved policy disputes and a crowded Senate calendar. The coming weeks are expected to be critical as lawmakers decide whether the legislation can advance this year.
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