President Donald Trump pressed the Senate to move the CLARITY Act, warning that China may seize management of crypto and synthetic intelligence (AI) if lawmakers fail to behave.
The attraction arrives with the Senate again in session and a slender window earlier than the recess that begins August 8. Lawmakers have roughly 4 weeks, extensively considered because the invoice’s final practical probability this yr. But, success odds on prediction market Polymarket have plummeted by nearly 5% as we speak.
Trump Frames the CLARITY Act as a China Race
Trump posted the attraction on Reality Social, linking it to the late Senator Lindsey Graham. The South Carolina Republican, whom he known as a supporter of the invoice, died over the weekend.
“China, and lots of different nations, want to take full and whole management of this main monetary “occurring,” in addition to A.I., the place we are actually main, however the place they’re preventing onerous. Don’t let China win on both topic!!!” Trump articulated.
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The warning frames a wider contest between Washington and Beijing over digital property and AI. CLARITY would construct on the GENIUS Act, the primary main US crypto legislation, signed final July.
The Home handed the Digital Asset Market Readability Act 294-134 in July 2025, with dozens of Democrats becoming a member of. It later cleared the Senate Banking Committee 15-9.
The invoice now wants 60 votes on the Senate ground, a threshold that has grown extra politically costly to succeed in.
Why 60 Votes Stay Out of Attain
The invoice nonetheless faces unresolved fights, and ethics is the most important. Democrats need guardrails on conflicts of curiosity tied to Trump’s crypto enterprise.
Trump’s newest monetary disclosure confirmed crypto as his greatest earnings supply. It included greater than $1 billion from his household’s ventures, led by over $500 million from World Liberty Monetary.
The 2 committee Democrats who backed the invoice mentioned their help wouldn’t lengthen to the ground with no deal. Negotiators additionally disagree over developer legal responsibility protections for non-custodial software program.
Graham’s loss of life and Mitch McConnell’s absence since mid-June depart Republicans little margin. That raises the stakes for successful Democratic help.
Analysts Break up on the Odds
Trade voices disagree on the end result. Solana Coverage Institute President Kristin Smith sees an actual path, citing constructing momentum and the rising invoice textual content.
Nonetheless, Galaxy Digital Head of Analysis Alex Thorn is extra cautious. His agency just lately minimize its passage odds to 50%, citing a shrinking calendar and competitors for ground time.
Prediction market Polymarket mirrors that doubt. As of July 13, its merchants put the percentages of passage this yr close to 24%, down from above 70% earlier.
Custodia Escalates Its Fed Combat
In the meantime, Wyoming crypto financial institution Custodia requested the Supreme Court docket to revive its struggle with the Federal Reserve. The financial institution needs justices to evaluate its denied grasp account.
The Federal Reserve Financial institution of Kansas Metropolis rejected that account in January 2023, citing its crypto focus. Founder Caitlin Lengthy petitioned the courtroom after decrease courts backed the Fed.
Critics have lengthy known as the denial an instance of Operation Choke Level 2.0.
The approaching weeks will check whether or not Washington can ship crypto’s greatest legislative prize earlier than the calendar runs out.
The publish Polymarket Odds Plummet Regardless of Trump Pushing CLARITY Act With Pressing China Warning appeared first on BeInCrypto.