[ND Analysis] President Trump's Ultimatum: Aiming for Digital Asset Hegemony by Passing the CLARITY Act Before August Recess

On July 13, 2026, President Donald Trump increased legislative pressure on the Senate, calling for the swift passage of the CLARITY Act. President Trump defined the bill as an essential national security strategy to prevent China from dominating the digital asset market. As the August recess approaches, the administration views the next three weeks as the final opportunity to complete the regulatory framework before the 2026 midterm election cycle begins.

"Don't let China win. We must foster the crypto industry in America and lead the world."

President Trump's remarks are interpreted as an intent to solidify U.S. digital asset hegemony based on the GENIUS Act passed last year. He repeatedly emphasized that establishing cryptocurrency regulations is a strategic stronghold for gaining an advantage in global technological competition, beyond mere financial policy. Within the administration, there are expectations that this legislation will be a decisive moment for establishing 'Made in USA' regulatory standards.

Legislative Schedule and Failure to Meet July 4th Goal

White House crypto advisor Patrick Witt initially set July 4, 2026—the 250th anniversary of the founding of the United States—as the deadline for the bill's passage, but that goal fell through as Senate legislative procedures were delayed. Now, the market's attention is focused on the Senate hearing scheduled for July 17, which is expected to be the most critical turning point for processing the bill before the August recess. Within Congress, the prevailing analysis is that the remaining three-week schedule will be the key period determining the bill's success or failure.

• Provides a one-year grace period for the transfer of custody systems to allow companies to adapt to the new regulatory environment.
• Strengthens investor protection by mandating the strict separation of customer assets and corporate operating funds.
• Accelerates integration with institutional finance by establishing clear federal standards for stablecoin issuers.
• Induces the inflow of approximately $5 trillion in institutional capital into the market by resolving regulatory uncertainty.

Market data shows that the demand for regulatory clarity is higher than ever. In June 2026, adjusted stablecoin transaction volume reached $1.79 trillion, hitting an all-time high and representing a 125% surge compared to the same period last year. Although the total circulating supply decreased by approximately $7.7 billion, actual transaction activity maintains an explosive growth trend, supporting the need for institutional frameworks.

The adoption of digital dollars in the global market is also accelerating. After lifting cryptocurrency restrictions in mid-2024, the Central Bank of Bolivia is considering integrating Tether (USDT) into the national payment system as transaction volume reached $430 million. This international trend is lending weight to calls for the swift passage of the Clarity Act within the United States and is evaluated as contributing to solidifying the digital dollar's status as a global payment standard.

In the political sphere, Senator Cynthia Lummis is leading efforts to secure a Senate vote. With a coalition of over 100 cryptocurrency-related companies expressing support for the bill, major exchanges like Coinbase—which previously held differing views on developer liability—are now also lending their support to the legislative push. This united front from the industry is playing a crucial role in persuading moderate senators.

The background of this legislative push also appears to involve President Trump's personal interests. According to financial disclosures released on July 1, 2026, President Trump earned approximately $1.4 billion through cryptocurrency-related businesses during the year 2025. This accounts for the largest portion of his total income, suggesting that the growth of the digital asset industry is directly linked to the President's personal asset value.

However, the situation in the House of Representatives remains opaque. Due to factional conflicts within the Republican Party, the House is effectively in a state of paralysis, so even if it passes the Senate, significant friction is expected during the House approval process. Furthermore, disagreements between the ruling and opposition parties regarding specific provisions on the scope of developer liability remain an unresolved challenge, leaving many hurdles to overcome before final enactment.

Galaxy Research forecasts the probability of the Clarity Act being finalized into law within 2026 to be between 60% and 75%. Whether the Senate can process the bill expeditiously in response to President Trump's demands during the three weeks remaining before the August recess will be a key variable determining the direction of the U.S. digital asset industry. Market participants are closely watching the outcome of this "three-week sprint."