Trump Says US Must Beat China in Crypto as Senate Delays Bill

President Donald Trump warned that China could seize the lead in digital assets as the Senate stalls on a major crypto market structure bill, the CLARITY Act.

“We don’t want to see China take over crypto,” Trump told Punchbowl News in an interview published Tuesday. He said the U.S. needs to maintain its dominance in the space, adding that several countries are racing to become No. 1.

The CLARITY Act, which would set new rules for digital asset exchanges and clarify which tokens are securities, failed to get a cloture vote before the Senate left for its August recess. Majority Leader John Thune said the bill will be “first thing when we come back” in September. Prediction markets now give the legislation a 27% chance of passing this year, down from 45% in July, according to crypto market analysis.

Trump also pushed back against ethics proposals that would limit his ability to participate in crypto or family businesses during his tenure. “Well, I don’t mind putting it in a blind trust,” he said. “I don’t run my stuff anyway. I let my kids run it.” He said he does not discuss government matters with his children.

The president linked crypto to artificial intelligence as two sectors that will shape the future global economy. “If China took over crypto, which they would love to do, or if China took over AI, which they would really [want],” he said, insisting the U.S. should remain a leader in both. He rejected tighter regulation, saying restrictions could stifle innovation and give foreign competitors an edge. “Crypto is a big deal,” he said. Other nations are seeking control of the industry, he added.

The delay has frustrated industry advocates who see the bill as a crucial step toward regulatory clarity. The Senate is expected to take it up again after the August recess, Thune said. The 27% odds on prediction markets reflect the uncertainty: the bill still faces disputes over ethics rules, illicit finance provisions, and other unresolved issues. Without a floor vote before the end of the year, the legislation would need to be reintroduced in the next Congress.

Trump’s comments underscore the political stakes. The China competition narrative gives the administration a reason to push for faster action, even as the president’s own involvement in the sector raises conflict-of-interest questions. Ethics rules that would force him to divest crypto holdings remain a sticking point. The Senate returns in September, and Thune’s pledge to make the CLARITY Act the first item on the agenda sets up a concrete timeline.