President Donald Trump forced the Senate to pass the CLARITY Act, warning that China could control crypto and artificial intelligence (AI) if lawmakers fail to act.
The appeal comes with the Senate returning to session with a narrow window before recess begins on August 8. Lawmakers have about four weeks, which many see as their last chance to pass the bill this year. However, the probability of success in the Polymarket prediction market has decreased by about 5% today.
Trump Enacts CLARITY Act as Competition for China
Trump posted an appeal on Social Truth, linking it to the late Senator Lindsey Graham. The South Carolina Republican, who called him a sponsor of the bill, died over the weekend.
“China, and many other countries, want total and absolute control over these big economies” that are happening,” and AI, where we are leading, but where they are fighting hard. Don’t let China win on any topic!!! Trumpet to explain.
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The warning sets up a fierce competition between Washington and Beijing in the digital economy and AI. CLARITY will build on the GENIUS Act, the first major US crypto law, signed last July.
House it has passed Digital Asset Market Clarity Act 294-134 in July 2025, with many Democrats joining. It later cleared the Senate Banking Committee 15-9.
The bill now needs 60 votes in the Senate, a growing seat very expensive politically to arrive.
Why 60 Votes Not Found
The bill still faces unresolved battles, and culture is the biggest. Democrats want immunity from conflicts of interest connected to Trump’s crypto business.
Trump’s recent financial disclosures highlighted crypto as his main source of income. It included more than $1 billion from his family’s businessled by more than $500 million from World Liberty Financial.
Two congressional Democrats who sponsored the bill said their support would not reach the floor without a deal. Negotiators also argue security liability software for non-maintenance programs.
Graham’s death and Mitch McConnell’s absence since June left few Republicans. This leads to the possibility of winning democratic support.
Researchers Are Divided Over Problems
Company statements do not agree on results. Solana Policy Institute President Kristin Smith sees a real trend, citing the housing boom and emerging literature.
However, Galaxy Digital Head of Research Alex Thorn is more cautious. His company recently reduce its means up to 50%, citing a shrinking calendar and lower season competition.
Market prediction Polimamarket suspicious glasses. As of July 13, its traders put the chance of passing this year at around 24%, down from above 70% previously.
Custodia Expands Its War on the Fed
Meanwhile, Wyoming crypto bank Custodia asked the Supreme Court to revive it against the Federal Reserve. The bank wants a jury to review its rejected capital account.
The Federal Reserve Bank of Kansas City rejected the account in January 2023, citing the nature of the cryptocurrency. Founder Caitlin Long filed a lawsuit after lower courts upheld Fed.
Critics have called the denial an example of Operation Choke Point 2.0.
The coming weeks will test whether Washington can issue a major crypto legislative award before the calendar ends.
A note Polymarket Odds Plummet Even As Trump Pushes CLARITY Act With Urgent China Warning appeared for the first time BeInCrypto.
