CLARITY Act delay gives Asian financial hubs an opening: First Digital CEO
The US Senate’s delay of a vote on crypto market structure legislation could give Hong Kong and Singapore more time to strengthen their positions as digital asset hubs, according to First Digital founder and CEO Vincent Chok.On Friday, Thune’s office confirmed to Cointelegraph that the Senate would not vote on the legislation before the August recess. Thune cited Democratic opposition and said the bill would be a priority when senators return in September.Chok, whose company issues the FDUSD stablecoin, said the delay could give jurisdictions with clearer regulatory frameworks an advantage in attracting capital and talent as US uncertainty weighs on institutional adoption. He said the postponement leaves institutions without clear rules on market structure, custody and oversight. “Markets can adapt to slower timelines, but what they struggle with is prolonged uncertainty,” he said in a statement sent to Cointelegraph.Delay fuels concerns over enforcement and offshore innovationChok said regulatory progress outside the US would continue regardless of the CLARITY Act’s timetable. “For Asia, this delay gives regional financial hubs like Hong Kong and Singapore additional time to demonstrate that clear regulation can coexist with innovation,” he said. Maylea Ma, deputy general counsel at decentralized exchange aggregator 1inch, said that if Congress ultimately failed to enact the legislation, the industry could face a return to “regulation by enforcement.” Market participants would remain dependent on agency interpretations, case-by-case enforcement and a fragmented patchwork of state money transmitter and securities rules, she said.Related: CLARITY Act failure could send crypto valuations lower: BernsteinMa contrasted that uncertainty with the European Union, where the Markets in Crypto-Assets Regulation (MiCA) is already in force. She said 1inch would continue operating under its conservative, non-custodial and self-custody-focused model while awaiting greater legal certainty in the US.Wellington-Altus chief market strategist James E. Thorne offered a more politically charged response, calling the postponement a “fold” by Thune and a victory for Senator Elizabeth Warren and the regulatory status quo. He said continued ambiguity would push innovation offshore while other jurisdictions develop clearer regimes.“Regulation should have been passed years ago,” he wrote on X. “Instead, Washington chose to live in ambiguity, letting Warren and the bank lobby weaponise uncertainty, the SEC and the Fed went along for the ride, and now Thune is keeping the CLARITY Act stuck in procedural limbo.”Magazine: 10 weirdest things ever tokenized… including farts
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