Trump Backs Clarity Act, Teases More Government Bitcoin Holdings

US President Donald Trump has urged lawmakers to pass the Clarity Act, a bill that aims to establish a framework for distinguishing between digital assets that are securities, commodities or payment stablecoins. The bill has been in limbo since being passed by the House of Representatives last year, but Trump's endorsement may give it new momentum.

The Clarity Act is seen as crucial for the development of the crypto industry in the US, and Trump emphasized its importance in keeping the country ahead of China. 'We need Congress to take the next step by passing the Clarity Act - a fair version of the Clarity Act,' he said.

Trump also hinted at the possibility of the government accumulating more Bitcoin, stating that 'it's been talked about' and that it would be 'very good for the dollar.' He signed an executive order last year to establish a strategic bitcoin reserve, but it does not commit to buying the asset.