- Donald Trump urged Senate to pass the CLARITY Act in honor of late Senator Lindsey Graham
- The CLARITY Act aims to establish a clear regulatory framework for cryptocurrencies in the US
- Trump warned against China dominating cryptocurrency and AI sectors, urging US leadership
Donald Trump has called on the Senate to pass the CLARITY Act, a major cryptocurrency bill, saying it would be a fitting tribute to the late Senator Lindsey Graham, who died over the weekend at the age of 71 after a "sudden and brief illness".
"In honor of Senator Lindsey Graham, a big supporter, the U.S. Senate should pass the Clarity Act," the US President wrote on Truth Social.
He also warned that China and other countries were trying to dominate both the cryptocurrency and artificial intelligence (AI) sectors and urged lawmakers not to let the US lose its lead. "Don't let China win on either subject!!!" he wrote.
What is the Clarity Act?
The Clarity Act, formally called the Digital Asset Market Clarity Act or H.R. 3633, is proposed US federal legislation designed to create a comprehensive regulatory framework for cryptocurrencies and digital assets.
The bill is one of Trump's top legislative priorities ahead of the US midterm elections. It is expected to come up for a full Senate vote in the coming weeks before lawmakers leave for the August recess. Major crypto companies, including Coinbase, Circle and Ripple, have backed the bill, saying clear regulations will increase investor confidence and help the industry grow.
Why Democrats Oppose It
The Clarity Act has faced opposition from some Democrats. They want stronger ethics rules to prevent elected officials from profiting from cryptocurrencies while in office. Financial disclosures released last month showed that Trump earned about $1.2 billion from crypto-related ventures last year.
Trump said the Senate should pass the bill in memory of Graham, describing him as a "big supporter." However, Graham was not a central figure in shaping the Clarity Act. He was not even a member of the Senate Banking Committee that approved the Act by a 15-9 vote in May. Graham was best known for his work on foreign policy and national security.
Before his death, he had been pushing for tougher sanctions on Russia and was involved in discussions on the conflict involving Iran. He had also returned from a visit to Ukraine just days before he died.
Sen. Jeanne Shaheen, D-NH, told CNBC, "There can be no more fitting memorial to Lindsey, his legacy, or the causes he fought for, than to pass this legislation and realize his long-held dream of an independent and secure Ukraine."
