US President Donald Trump has asked the Senate to pass the Clarity Act, a major cryptocurrency regulation bill, in honor of late Senator Lindsey Graham. Trump made the appeal in a post on Truth Social on Monday. Trump wrote that passing the Clarity Act would honor Graham, whom he called “a big supporter.”
In the same post, Trump warned that China and other countries want to take control of the cryptocurrency industry and artificial intelligence (AI). Trump said the US is currently leading in AI but claimed China is working hard to catch up. Trump ended his message by saying, “Don’t let China win on either subject”, according to The Hill.
Lindsey Graham’s death
Lindsey Graham died over the weekend at the age of 71 after what his office described as a “sudden and brief” illness. Preliminary findings from the medical examiner said Graham died from an aortic dissection caused by arteriosclerotic cardiovascular disease. Graham was a Republican senator from South Carolina.
Although Trump linked Graham’s name to the Clarity Act, Graham was not directly involved in writing the crypto bill. Graham was not a member of the Senate Banking Committee, which worked on the legislation. Because he was not on the committee, Graham did not vote when the committee approved the bill in May. The Senate Banking Committee passed the Clarity Act by a 15-9 vote, with two Democrats joining Republicans, according to CNBC.
What is the Clarity Act?
Graham was also not a major voice in debates about cryptocurrency policy. Instead, Graham mainly focused on foreign policy and national security issues during his time in the Senate. Before his death, Graham was working on a new Russia sanctions package and issues related to the war involving Iran. He had also just returned from a visit to Ukraine before he died.
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The Clarity Act is one of Trump’s top legislative priorities before the US midterm elections. The bill is expected to come up for a full Senate vote in the coming weeks before lawmakers leave for the August recess. The Clarity Act would create one of the first broad federal rules for regulating cryptocurrencies in the United States, as noted by CNBC. The White House supports the bill. The cryptocurrency industry also strongly supports the legislation.
Crypto bill faces opposition
Companies including Coinbase, Circle and Ripple have backed the Clarity Act. These companies believe clear regulations could increase investor confidence in the crypto market. However, the bill has faced opposition from Democrats during Senate negotiations. Democratic lawmakers want stronger ethics rules to stop elected officials from making money through digital assets while in office.
Trump’s own business interests in cryptocurrency have become a major issue in those discussions. Financial disclosures released last month showed Trump earned about $1.2 billion in crypto-related income last year, according to The Hill. Critics say those earnings have made negotiations over the bill more difficult. Some banks have also opposed the Clarity Act. Banks argue the bill could allow crypto companies to offer interest-like payments on stablecoins.
Senate vote and next steps
They say this could reduce bank deposits and leave banks with less money available for loans. Some law enforcement groups and labor organizations have also opposed the legislation. Some lawmakers believe Graham should instead be honored by passing the Russia sanctions package that he strongly supported.
Senator Jeanne Shaheen said passing the Russia sanctions bill would be the most fitting tribute to Graham’s legacy and his support for an independent and secure Ukraine, according to CNBC. Graham’s death has also reduced the Republican majority in the Senate from 53 seats to 52, which could make it slightly harder for Republicans to pass major legislation.
