Trump Pushing for Approval of the Clarity Act
Donald Trump has asked banks not to block approval of the Clarity Act and urged them to refrain from efforts that would weaken the United States’ position in the crypto sector. He requested the Senate to pass the crypto‑regulation Clarity bill quickly, warning that any inactive measures may strengthen China’s position in the crypto industry. Trump did not specify how inactiveness of Senate on passing Clarity Act would benefit China; notably, China has recently banned all forms of crypto trading.
Trump often frames arguments in ways that resonate with the public sentiment. Using the same logic, he may encourage Americans to buy crypto — “otherwise China will take the lead in the crypto sector” — a refrain we have heard repeatedly over the past year. Effectively, he tells Americans: “Pay tariffs or China will capture key trade sectors and become the world’s largest economy.”
The president also said commercial banks are posting record profits and have an interest in slowing development of crypto sector. Earlier, major crypto exchange Coinbase withdrew its support for the Clarity bill, and the proposal is currently stalled in the Senate Banking Committee. Banks have opposed approving dividend payouts from stablecoin holdings of various capital‑accumulating firms; such approval may pull capital out of the banking system as investors move funds into interest‑bearing stablecoins. This issue is considered as a central obstacle to passing the Clarity Act.
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