U.S. Clarity Act failure gives Asia and Middle East a competitive edge, says Apex Group CEO
Apex Group CEO Peter Hughes argues that the U.S. failure to pass the Clarity Act creates a regulatory vacuum that benefits crypto-friendly jurisdictions in Asia and the Middle East. He suggests that while Europe has established frameworks like MiCA, they are too restrictive, leaving room for faster-moving regions to capture the blockchain-based financial market.
Why it matters
The lack of U.S. legislative clarity on digital assets is driving capital and business innovation toward international markets, potentially impacting the U.S. position in the global fintech economy.
Hughes said, however, that Europe will not benefit from Washington’s setback despite having its own rules in place since July 1 .
“I think that the Clarity Act and the delay around that will lead to people finding other solutions elsewhere,” Hughes told CoinDesk in an interview.
Hughes singled out Europe’s Markets in Crypto-Assets Regulation (MiCA), describing it as slow to evolve and restrictive.
“But I do think there's opportunities in Asia, which are moving quickly; the Middle East; even places like Bermuda are moving quickly around having the right regimes to really produce the product for the future, and they'll step into this gap,” he said.
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