DCG Backs Clarity Act, Warns US Losing Crypto Capital to Singapore

Digital Currency Group is urging the Senate to pass the Clarity Act before the August recess, warning that continued regulatory deadlock will drive capital and crypto firms to jurisdictions like Singapore and the UAE. The crypto investment firm, whose portfolio includes over 200 companies such as Grayscale Bitcoin Trust manager Grayscale, threw its weight behind the legislation in a statement on Wednesday.

For institutional investors and market makers, the bill represents the most viable path to operational certainty within the United States. Without it, the country risks forfeiting its position as the centre of technological innovation. "The competitive stakes could not be higher," DCG warned, noting that "talent, capital, and innovative companies" are already looking abroad to set up shop.

Lawmakers have been negotiating the framework since last year. Republicans passed the bill in 2025 before it hit a deadlock this year, partially due to banking chiefs raising concerns over stablecoin yield. A new draft circulating last week attempts to break this logjam by banning officials and their families from issuing or promoting crypto, directly addressing a previous point of contention.

Despite these revisions, a group of Democrats penned a statement last week claiming the bill falls short. Critics like Senator Elizabeth Warren have argued the legislation would allow President Donald Trump to profit from crypto and benefit criminals. These political fault lines are complicating the push to get the bill over the finish line before Congress departs.

However, major financial institutions view the revised text as workable. Fidelity and Goldman Sachs, alongside crypto lobby groups and several politicians, have stated the current format functions adequately. DCG characterised the bill as a genuine compromise, stating it "offers exactly the kind of certainty our industry needs to grow and thrive responsibly."

With the August recess looming, GOP lawmakers are applying maximum pressure on Democratic holdouts. The financial sector is now watching to see if Congress will establish clear rules or effectively surrender the market to competing financial centres.