US President Donald Trump called on lawmakers Monday morning to pass the Clarity Act crypto legislation in honor of Senator Lindsey Graham, who died unexpectedly on Saturday. Trump posted on Truth Social urging the Senate to advance the bill, which would place digital assets under Commodity Futures Trading Commission (CFTC) oversight rather than Securities and Exchange Commission (SEC) jurisdiction. The legislation faces opposition from traditional banks concerned about financial stability risks and stablecoin competition with deposits.
Trump Urges Senate Action on Clarity Act Following Graham's Death
Trump wrote on Truth Social Monday morning: "In honor of Senator Lindsey Graham, a big supporter, the U.S. Senate should pass the Clarity Act. China, and many other countries, would like to take complete and total control of this major financial 'happening,' as well as A.I., where we are now leading, but where they are fighting hard. Don't let China win on either subject!!!"
The Clarity Act would transfer regulatory authority over digital assets from the SEC to the CFTC. Industry stakeholders view the CFTC as more favorable to the crypto sector than the SEC.
JPMorgan CEO Dimon Voiced Opposition to Clarity Act in June
Traditional financial institutions and banking associations have opposed the legislation. In June, JPMorgan Chase chief executive Jamie Dimon criticized the bill for lacking investor protections and failing to address Bank Secrecy Act/Anti-Money Laundering (BSA/AML) requirements.
Dimon stated: "It allows them to effectively pay interest on deposits—stablecoins or something like that—without the protection that they should have and it doesn't do anything for AML/BSA. It has almost no legal protection."
Banking sector representatives have argued the bill could threaten financial stability and cause bank deposits to lose ground to stablecoins.
Polymarket Odds for Clarity Act Passage Fell to 40%
Polymarket bettors' confidence in the Clarity Act passing this year declined as banking opposition solidified. The bill's odds dropped from a high of 82% in February to 40% at time of writing.
CFTC Chairman Selig Calls for Federal Crypto Standards
CFTC Chairman Michael Selig recently urged senators to pass the legislation. Selig emphasized the need for federal crypto asset standards to replace the current patchwork of state regulations.
Selig stated: "It's absolutely critical that we have federal standards for crypto assets. And right now we've dealt with a patchwork of state laws and regulations, and it's really been bad for business here in the United States. We want to get this done so that we have certainty and clarity, and consumer protection should be a bipartisan issue. We've got to get it across the line."
FAQ
What did Trump call for on Monday morning regarding the Clarity Act?
Trump posted on Truth Social Monday morning urging the Senate to pass the Clarity Act in honor of Senator Lindsey Graham, who died Saturday. The bill would place digital assets under CFTC regulatory oversight.
Why did JPMorgan CEO Jamie Dimon oppose the Clarity Act?
In June, Dimon criticized the legislation for lacking adequate investor protections and failing to address Bank Secrecy Act/Anti-Money Laundering law requirements. He stated the bill allows stablecoin interest payments without proper safeguards.
