Donald Trump urged the Senate to pass the CLARITY Act in tribute to Lindsey Graham. The bill seeks clearer U.S. crypto rules, but negotiations remain divided over ethics provisions and Trump’s crypto-related business interests.
President Donald Trump has urged the Senate to approve the Digital Asset Market Clarity Act, linking the crypto bill to the memory of Senator Lindsey Graham. Graham died on July 11 at age 71 after an aortic dissection linked to cardiovascular disease.
Trump wrote on Truth Social, “In honor of Senator Lindsey Graham, a big supporter, the U.S. Senate should pass the Clarity Act.” He also warned that China was seeking an advantage in cryptocurrency and artificial intelligence, adding, “Don’t let China win on either subject.”
What the CLARITY Act Would Change
The CLARITY Act, formally known as H.R. 3633, would create a federal market structure for digital assets. The bill seeks to define when a token falls under securities law and when it qualifies as a digital commodity. It would divide oversight duties between the Securities and Exchange Commission and the Commodity Futures Trading Commission.
Under the proposal, the SEC would oversee digital assets treated as securities and related investment contracts. The CFTC would gain wider authority over spot markets for digital commodities. Crypto exchanges, brokers and dealers would face registration, disclosure, custody and customer protection rules. The measure also protects lawful self-custody and requires regulators to write joint rules.
Senate Push Faces an August Deadline
The House passed its version of the CLARITY Act in July 2025. The Senate Agriculture Committee later advanced separate digital commodity legislation, while the Senate Banking Committee approved H.R. 3633 by a 15-9 vote in May 2026. Lawmakers are now working to combine the committee texts before a full Senate vote.
Senate Majority Leader John Thune wants the bill considered during the work period ending August 7. Several senators are due to meet Trump at the White House to discuss its path. Senator Bernie Moreno said the group would brief the president, while Senator Cynthia Lummis said lawmakers were still preparing a revised draft.
Ethics Rules Divide Senate Negotiators
The main dispute concerns ethics rules for elected officials and their families. Several Democrats want the bill to limit crypto holdings, business ties or income involving senior public officials. They argue that lawmakers should address possible conflicts while setting rules for an industry in which political figures may hold financial interests.
Trump’s 2025 financial disclosure has added pressure to the talks. Reports based on the filing estimate that crypto-linked businesses associated with Trump and his family produced about $1.4 billion in income during the year. Democratic senators have cited those figures while calling for stronger restrictions. Republican negotiators have not agreed on the final scope of an ethics section.
Graham Link Draws Political Attention
Trump described Graham as a strong supporter of the bill, but Graham did not lead the Senate committees that drafted or approved it. Senate Banking Chairman Tim Scott guided the committee vote, while Lummis and other lawmakers handled much of the wider market structure work. Graham focused more closely on foreign policy, defense and sanctions.
Still, Graham’s death has added pressure during a narrow legislative window. Republicans hold a slim Senate majority, while other absences have complicated the party’s schedule. Democrats can influence the bill’s progress, especially if the measure needs 60 votes to overcome procedural barriers and advance to a final vote.
What Happens Next
Lawmakers must settle the ethics language, merge the Banking and Agriculture committee proposals and release a revised text. Lummis said senators were considering whether to publish a draft with the ethics section in brackets or wait until negotiators approve final wording. Negotiations are still active.
The Senate can amend the House bill and send it back to the House, or both chambers can negotiate a final version. Trump has made the measure a priority before the midterm elections. A floor vote before August 7 would test whether supporters can secure enough Democratic backing while keeping Republican votes together.
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