Trump backs crypto as CLARITY Act odds drop to 30%

President Donald Trump told Punchbowl News that crypto is "a big deal" and people are increasingly paying with Bitcoin, framing US leadership in digital assets as a competitive necessity against China.

President Donald Trump told Punchbowl News that crypto is "a big deal" and people are increasingly paying with Bitcoin, saying the US cannot afford to let China or other countries dominate the space.

"Crypto is a big deal, people are paying with Bitcoin," Trump said in the interview, according to Punchbowl News. He said he supports the industry because the US cannot afford to cede leadership in digital assets to China or other nations.

The comments arrive as the Senate prepares to break for recess on Friday with no cloture motion filed on the CLARITY Act, the proposed US market structure bill for digital assets. Galaxy Research cut its 2026 passage odds for the legislation from 50 percent to 30 percent, according to the firm's latest assessment.

Trump's endorsement carries direct weight for the industry's legislative prospects. His administration has already taken a pro-crypto posture, with the SEC stating that meme coins serving purely as community tokens will not be classified as securities. The president's own official meme coin and Canary Capital's pending PENGU ETF filing with the SEC reflect the administration's broader embrace of digital assets.

Legislative Stakes

The CLARITY Act's stalled progress in the Senate highlights the gap between presidential rhetoric and legislative reality. With the chamber heading into recess and no cloture motion filed, the bill faces an uphill path to passage this year. Galaxy Research's downgrade from 50 percent to 30 percent odds reflects growing skepticism about the timeline, even as the White House expresses support for the industry.

The bill's fate matters beyond Washington. A clear US market structure framework would give exchanges, custodians, and institutional investors the regulatory certainty needed to expand operations. Without it, the industry continues to operate under fragmented guidance from the SEC and Commodity Futures Trading Commission, leaving compliance teams to navigate overlapping jurisdictions.

Global Competition

Trump's framing of crypto as a competitive race with China echoes broader US-China tensions across technology sectors. While the US has moved toward regulatory clarity under the current administration, other jurisdictions have taken divergent approaches. India, for example, maintains a 30 percent flat tax on virtual digital asset gains with a 1 percent tax deducted at source, one of the world's strictest crypto tax regimes. The contrast highlights the policy divergence shaping where crypto capital flows.

Meanwhile, the SEC's position on meme coins has opened a new lane for community tokens. The agency's statement that meme coins serving purely as community tokens will not be classified as securities has provided cover for projects like Pudgy Penguins, whose PENGU token trades at $0.0060 with a market capitalization of $538.10 million. Canary Capital's ETF filing for PENGU, acknowledged by the SEC on July 9, triggered a 127 percent price surge in the token.

For market participants, Trump's public endorsement adds another layer of political support to an already bullish crypto narrative. The combination of presidential backing, SEC guidance on meme coins, and institutional interest through products like the proposed PENGU ETF could accelerate capital flows into digital assets as the year progresses.

This article is for informational purposes only and does not constitute investment advice.