Why President Trump Is Rushing to Pass the CLARITY Act? Deciphering the Intentions and Impact on the Web3 Industry

TradingKey - On July 13, Eastern Time, U.S. President Donald Trump called for the passage of the "Clarity Act" legislation, posting on the social media platform Truth Social, "In honor of Senator Lindsey Graham, an important supporter, the U.S. Senate should pass the Clarity Act."

Reportedly, Lindsey Graham was a highly influential Republican political figure in modern U.S. history who had long served as a U.S. Senator from South Carolina and formerly chaired the Senate Budget Committee and the Judiciary Committee. He passed away suddenly on July 11 at the age of 71 due to an aortic dissection caused by cardiovascular disease. However, is Trump's push to pass the "Clarity Act" really just to honor the Senator? Are there other intentions?

What Is the Clarity Act?

The 'Clarity Act', formally known as the 'Digital Asset Market Clarity Act', is a landmark bipartisan legislation pushed by the U.S. Congress, aiming to end the years-long regulatory turf war between U.S. regulators, especially the SEC and the CFTC, and to provide rules for compliant operations for Web3 enterprises.

The core content of the 'Clarity Act' mainly consists of four points, covering regulation, institutions, users, etc., as follows:

Why Trump Urges Passage of the Clarity Act?

Trump's urgent push for Congress to quickly pass the 'Clarity Act' is not simply to honor Senator Lindsey Graham. Rather, it is more likely aimed at preventing a numerical disadvantage from causing the bill to fail, thereby securing his political objectives and commercial interests.

Importantly, Graham's passing could complicate the bill's passage in the Senate, as the Republicans' already razor-thin majority in the chamber has narrowed to 52 to 47. In addition, Congress will enter its summer recess on August 8, after which lawmakers will fully shift their focus to the November midterm election campaigns. This means that if the Senate cannot pass the 'Clarity Act' by August 7, and the Democrats regain control of the Senate after the midterms, this highly crypto-friendly bill will most likely be shelved indefinitely or completely gutted.

Should the bill be gutted or shelved, it would represent more than just the failure of a single piece of legislation for Trump; it would trigger a legal crisis for his personal business empire, sever funding chains for the midterm elections, and lead to the complete collapse of his grand strategy for a crypto capital. This would manifest as: major campaign-promise failures and fundraising crises in the midterm elections, his private crypto empire worth up to $1.2 billion being held to the fire, and the outflow of U.S. rulemaking authority.

What Is the Impact of the Clarity Act on the Crypto Industry?

If the Clarity Act is officially passed, it will represent the most disruptive and largest institutional watershed in history for the entire cryptocurrency and Web3 industry. It will completely rewrite the rules of the game for the crypto sector, forcibly dragging it from the bygone era of wild growth into an era of compliance—for instance, by ending regulatory infighting, attracting institutional capital (TradFi), and protecting DeFi developers and self-custody.

While the market views the U.S. passage of this bill as a done deal, what if an unexpected turn of events occurs? If the bill fails to pass, it would be a major blow to the crypto industry, "pushing back the timeline for regulatory compliance, legalization, and mainstream adoption by several years." All the aforementioned benefits would fail to materialize, and the crypto industry would have to continue navigating, defending, and wandering in legal gray areas.

When Will the Clarity Act Pass?

The legislative process for the "Clarity Act" is already well underway, including passing the House by a large margin and clearing the Senate Banking Committee. Currently, the bill is entering the debate and voting phase on the Senate floor, leaving it just one step away from the final showdown.

For the fate of the bill, August 7, 2026, is an insurmountable golden deadline. At that time, the U.S. Congress will enter its summer recess, and subsequently, all lawmakers will throw themselves entirely into the midterm election campaigns in November. However, according to prediction market Polymarket 's latest data, market expectations for the bill's passage within 2026 stand at around 37%, a significant decline from 74% a month ago. If the bill cannot be passed this year, it could be delayed by three years. Previously, Senator Cynthia Lummis, who champions the bill, warned that 'once this opportunity is missed, the next legislative window may not open until 2030.'

Conclusion

The death of U.S. Senator Graham has narrowed the Republicans' Senate majority, prompting President Trump to immediately urge the accelerated passage of the "Clarity Act" by citing a tribute. This move is aimed at preventing the bill from being derailed by a shift in power in the midterm elections, thereby protecting his personal crypto empire valued at up to $1.2 billion and advancing the strategy to make the U.S. the "crypto capital." However, the bill currently remains stalled, and a delay until 2030 cannot be ruled out.