CLARITY Act Faces Growing Uncertainty
Trump renews support for the CLARITY Act, but its chances of passing have fallen to just 40%.
Donald Trump has once again urged the U.S. Senate to pass the Digital Asset Market CLARITY Act. Despite his renewed support, however, the bill's chances of becoming law in 2026 have declined significantly.
In a post published today on Truth Social, Trump argued that the United States must stay ahead of China and other global competitors in the race to lead the cryptocurrency and artificial intelligence industries. His position was backed by Senator Cynthia Lummis and Commodity Futures Trading Commission (CFTC) Chairman Mike Selig.
Trump also called on the Senate to pass the legislation as a tribute to Senator Lindsey Graham, who died on July 11 at the age of 71 following sudden cardiac arrest. Although Graham was a vocal critic of Trump during the 2016 presidential campaign, he later became one of the president's closest allies in the Senate. He strongly supported the CLARITY Act, along with legislation promoting the safe development of artificial intelligence and emerging technologies, arguing that such measures would help preserve America's competitive edge.
Despite renewed momentum, the bill continues to face several obstacles. Lawmakers remain divided over ethical concerns, rules governing interest-bearing stablecoins, and anti-money laundering provisions. Senators Angela Alsobrooks and Elizabeth Warren have also raised concerns about cryptocurrency holdings by public officials and the crypto-related business activities of the Trump family.
As negotiations continue to drag on, prediction market Polymarket now estimates the likelihood of the CLARITY Act passing this year at just 40%, down sharply from as high as 90% earlier this year.
The Senate has already returned from recess and has roughly 20 legislative days to approve the bill before the August break. If lawmakers fail to meet that deadline, further progress could be delayed by campaigning ahead of the September midterm elections. Meanwhile, on July 17, the House Digital Assets Subcommittee is scheduled to review a proposal outlining a new regulatory framework for digital assets.
