U.S. Senate crypto bill faces new passage risk after Trump backs Clarity Act

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Senate crypto bill faces risk

Highlights

Donald Trump urges Senate approval of the Clarity Act, linking the bill to U.S.-China competition in digital assets and artificial intelligence.
The Clarity Act, backed by Coinbase, Circle, Ripple and the White House, faces Senate resistance from Democrats demanding stronger ethics rules for elected officials.
Graham's death narrows the Republican Senate majority to 52-47, increasing passage risk for the bill amid opposition from banks, law enforcement, and labor groups.

Senate vote path and political pressure

As reported by CNBC, Trump is calling on the Senate to approve the Clarity Act and frames the measure as a way to honor Graham, whom he describes as a strong supporter of the legislation. In a Truth Social post, Trump also links the bill to strategic competition with China in both digital assets and artificial intelligence.

The Clarity Act is among the first broad legislative efforts to regulate cryptocurrencies in the U.S. It has support from the crypto industry and the White House, but it is facing resistance in the Senate as Democrats seek stronger ethics safeguards for elected officials, including Trump, who has made billions of dollars from digital currencies.

The Senate Banking Committee approved the bill 15-9 in May, with two Democrats joining Republicans to move it forward. Graham did not vote in committee because he was not a member of the panel.

Industry divisions and market implications

Crypto companies including Coinbase, Circle and Ripple support the Clarity Act, arguing that a clearer regulatory framework could help attract more investors to the sector. The measure is therefore being watched as a potentially important step for the structure and growth of the U.S. digital asset market.

Banks oppose the bill, warning it could let crypto firms offer interest-like payments to stablecoin holders and weaken deposit levels at traditional lenders. Law enforcement groups and some labor organizations also oppose the measure, adding to the coalition of critics as the Senate weighs the next stage of debate.

Graham's death could complicate passage because it reduces the already narrow Senate Republican majority to 52-47. That tighter margin may make it harder for supporters of the bill to manage defections and secure final approval.

In our earlier report on Trump’s latest financial disclosures, we outlined how income from family-linked crypto ventures surged while his holdings of traditional assets like stocks and bonds also expanded sharply. We also noted that despite high-profile promotion of digital assets, the filings suggest Trump has been shifting a significant portion of crypto-related proceeds into more conventional investments while still retaining sizable exposure through tokens and company-held bitcoin and ether.

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