Lummis Warns: Delay of CLARITY Act Will Accelerate Outflow of U.S. Companies
U.S. Senator Cynthia Lummis emphasized that for every day the CLARITY Act is delayed, U.S. crypto companies consider moving their future operations overseas.
Lummis stated that regulatory uncertainty is forcing innovative firms to reassess the feasibility of developing in the U.S. The act aims to clarify the jurisdictional division between the CFTC and SEC over digital assets, providing long-term certainty for the industry.
There is a consensus in the market: passing the act quickly will solidify the U.S.'s leadership in the global crypto and blockchain space; otherwise, regions like Singapore, Dubai, and the EU will continue to attract capital and talent away.
Source: Public Information
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Cynthia Lummis, one of the Senate's staunchest pro-crypto lawmakers, previously collaborated with Gillibrand to promote a stablecoin regulatory framework, and her public pressure continues her long-standing efforts on the CLARITY Act. The act has passed the House and is currently stalled in the Senate procedural phase, with banking lobby groups and some Democratic lawmakers still divided over stablecoin reward provisions.
In terms of capital pathways, U.S. crypto companies are preemptively relocating some engineering, talent, and funds to overseas compliant entities, implementing a "dual headquarters" strategy through Singapore or EU MiCA licenses; Lummis's warning aims to push both parties to reach a compromise quickly to avoid losing the first-mover advantage in the global crypto infrastructure race.
Similar to how the EU's MiCA, effective in 2024, has attracted numerous projects, and Singapore has become an Asian crypto hub over the past two years, the U.S. crypto industry is currently under critical pressure as the "regulatory window" is about to close.
Essentially, this is a regulatory change: delaying the CLARITY Act will shift capital from the U.S. domestic innovation ecosystem to overseas regulatory-friendly regions, forcing companies to restructure their global layouts due to the lack of clear rules, mechanism-wise accelerating the cross-border migration of talent, computing power, and liquidity through regulatory arbitrage, ultimately weakening the U.S.'s pricing power in next-generation financial and technological infrastructure.
ABAB News · Cognitive Law
Regulatory certainty has never been a luxury but a necessity to retain innovative companies. For every day of delay, the U.S. exports one more project and batch of talent overseas. When rules are ambiguous, capital will always vote with its feet to the most certain and friendly places.