Trump’s crypto post boosts push for CLARITY Act

President Donald Trump wrote on Truth Social on May 28 that the United States is the ‘crypto capital of the world.’ The post prompted the Securities and Exchange Commission, Senate Republicans and Ripple to press for rapid Senate passage of the Digital Asset Market Clarity Act, known as the CLARITY Act.

The CLARITY Act passed the Senate Banking Committee on May 14 in a 15-9 bipartisan vote. Supporters moved quickly to press for a full Senate floor vote after the president’s post. Senate Majority Leader John Thune controls floor scheduling, and backers are targeting the August recess as a practical deadline.

The bill would classify most digital tokens as commodities and divide oversight between the Commodity Futures Trading Commission and the SEC. It would require exchanges to provide custodial protections for customer assets, addressing gaps highlighted by the 2022 FTX bankruptcy.

In his post, Trump criticized former SEC Chair Gary Gensler and referenced an ‘Anti-Crypto Army,’ writing that their actions nearly destroyed the domestic crypto industry and promising a statutory framework to reduce future regulatory uncertainty.

Former SEC chair Paul Atkins wrote on X that the agency’s ‘enforcement-first era is over’ and pledged what he called ‘much needed clarity to digital asset markets’ under the current administration.

Senate Banking Committee Chairman Tim Scott framed the bill as a way to keep blockchain innovation in the United States and prevent projects from relocating overseas. Senator Cynthia Lummis highlighted the bill’s consumer protections, noting that without the CLARITY Act customers of a failed exchange would join a creditor line with no guaranteed right to their assets.

Ripple CEO Brad Garlinghouse described the development as vindication after the company’s litigation with the SEC, writing that the ‘Anti-Crypto Army’ had been defeated ‘by the courts… by the voters. And by Trump.’ Trade groups associated with Project Crypto also signaled support for faster congressional action.

Lawmakers must still secure 60 votes in the evenly divided Senate and reconcile differences with a House version of the bill. Debate on the Senate floor is expected to focus on the split of authority between the CFTC and SEC, the specifics of custodial requirements for exchanges, and consumer protections. If supporters fail to advance the measure before the August recess, lawmakers will face a compressed window before the November elections.