CLARITY Act Push: Trump Urges Senate SEC/CFTC Crypto Bill vs China

Donald Trump urged the U.S. Senate to pass the CLARITY Act, linking the bill to U.S. competitiveness and AI, and saying “Don’t let China win.” The call came after the death of key CLARITY supporter Sen. Lindsey Graham (R-SC). The CLARITY Act would reshape U.S. crypto market structure by splitting SEC vs CFTC oversight. The CFTC would regulate secondary trading of digital commodities such as BTC and ETH, while the SEC would keep authority over initial offerings. The bill also targets registration, disclosure, and consumer-protection rules for crypto firms. Still, Senate vote math remains tight. The Banking Committee advanced its version in May (15-9). After Graham’s death, Republicans hold a 52-47 majority, but the full Senate needs 60 votes to overcome the filibuster—likely requiring support from multiple Democrats. A combined Banking/Agriculture draft is expected, with possible floor timing during the week of July 20. Key unresolved disputes include tighter ethics/conflict limits and stablecoin yield rules. Democrats want stricter financial conflict restrictions for senior officials, while banks oppose provisions that could allow stablecoin holders to receive interest-like rewards. Backers include Coinbase, Circle, and Ripple. Trading sentiment also looks cautious: Polymarket cut the 2026 passage probability to 40%. For traders, the CLARITY Act is a potential catalyst for clearer rules, but uncertainty around SEC/CFTC drafting details and the 60-vote threshold keeps headline risk elevated.