U.S. Senator Lindsey Graham (R-SC) gestures, while standing next to former U.S. President Donald Trump, during Donald Trump’s campaign stop to unveil his leadership team, at the South Carolina State House in Columbia, South Carolina, U.S., January 28, 2023.
Shannon Stapleton | Reuters
President Donald Trump on Monday said he’s calling on the Senate to pass cryptocurrency legislation known as the Clarity Act to honor the late Sen. Lindsey Graham, R-S.C., who died at 71 over the weekend.
“In honor of Senator Lindsey Graham, a big supporter, the U.S. Senate should pass the Clarity Act,” Trump said in a post on Truth Social. “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 is one of the first wide-ranging pieces of legislation to regulate cryptocurrencies, and is backed by the crypto industry and the White House. It has hit some snags in the Senate, with Democrats pushing for increased ethics guardrails for elected officials like Trump, who has made billions of dollars on digital currencies.
The Senate Banking Committee approved the bill 15-9 in May, with two Democrats joining Republicans to advance the legislation. Graham did not serve on the Banking Committee, so he didn’t cast one of the votes.
Graham was also not a particularly key figure in crypto policy debates and was not a primary player in the Clarity Act. The bill has primarily been led in the Senate by Sen. Tim Scott, R-S.C., and Cynthia Lummis, R-Wyo.
Other senators have proposed passing a Russia sanctions package in honor of Graham, which he and his colleagues got White House approval to move forward with last week. Graham was heavily involved in national security issues and international affairs and had just returned from a trip to Ukraine the day he died.
Sen. Jeanne Shaheen, D-N.H., said there “can be no more fitting memorial to Lindsey, his legacy, or the causes he fought for, than to pass this legislation and realize his long-held dream of an independent and secure Ukraine.”
Crypto players including Coinbase, Circle and Ripple have supported the Clarity Act, hoping regulation of the industry will encourage investors.
Banks, however, opposed the bill, warning it could allow crypto groups to offer interest-like payments to stablecoin holders and lead to decreased bank deposits and a lack of capital for loans. Law enforcement and some labor groups also have opposed the measure.
Graham’s death could complicate Senate passage of the measure, as it narrows the already thin Senate Republican majority to 52-47.
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