The United States risks losing digital asset business to faster-moving jurisdictions in Asia, the Middle East and Bermuda after the Senate failed to advance the Clarity Act, Apex Group CEO Peter Hughes has warned. Speaking to CoinDesk, Hughes said continued delays in US crypto legislation will push companies to find solutions elsewhere.
Peter Hughes, CEO of Apex Group (Credits: CoinDesk)
Clarity Act delay hands Asia and the Middle East an edge
Hughes, founder and CEO of the global financial firm Apex Group, argued that without a clear and certain regulatory framework, digital asset businesses will simply move to jurisdictions that offer one. “I think that the Clarity Act and the delay around that will lead to people finding other solutions elsewhere,” he told CoinDesk.
Interestingly, Hughes said Europe will not be the main beneficiary of Washington’s setback, despite having its own crypto rules in place since July 1. He described Europe’s Markets in Crypto-Assets Regulation (MiCA) as slow to evolve and restrictive, suggesting it is not the competitive alternative some expected.
Saudi Arabia emerges as a tokenization hub
Instead, Hughes pointed to Saudi Arabia as an emerging tokenization hub, noting that the kingdom is opening its real estate market to digital assets and greater foreign investment. That kind of opening, he suggested, is exactly what attracts digital asset firms looking for a welcoming jurisdiction.
Hughes also highlighted two products he believes could accelerate institutional adoption: tokenized money market funds and regulated, yield-bearing stablecoins. In his view, these offer higher returns, collateral utility and broader access than traditional financial products — though, as with all such claims, the actual performance and regulatory treatment of these products will depend on how rules develop in each jurisdiction.
The message from Hughes is blunt: regulatory delay is itself a decision, and rival financial centres are ready to benefit from it.
Also Read: Senator Blumenthal Launches New Probe Into Tether’s Payments to Ex-White House Adviser Bo Hines | A16z Renames Crypto Fund to ‘a16z Frontier,’ Expanding Into AI and Emerging Tech
Source: CoinDesk — read the full story there.
