DCG Says US Faces 'Alarming' Offshore Flight Without CLARITY Act, Demands Vote Before August Recess

Digital Currency Group (DCG), a major crypto investment firm based out of Connecticut, with more than 250 portfolio companies called on Senate leadership on Wednesday to bring the Digital Asset Market Clarity Act (CLARITY Act) to the floor before the August recess.“Regulatory uncertainty is driving innovation and capital offshore,” DCG President Mark Murphy wrote in a letter to Senate Majority Leader John Thune and Minority Leader Charles E. Schumer."The United States has long been the global center of technological innovation, but we are ceding ground at an alarming pace. Every day without clarity is a day that talent, capital, and innovative companies choose Singapore, Abu Dhabi, the European Union, the United Arab Emirates, and other jurisdictions," Murphy wrote.Cost Of Delay Mounting For USThe company’s letter is the the crypto industry for passage of the CLARITY Act, which would create a statutory framework for digital-asset regulation and draw clear lines between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) jurisdiction.DCG’s subsidiaries include Grayscale Investments, which Murphy said was behind the first publicly traded Bitcoin funds more than a decade ago, and Foundry, which the company said operates the world’s largest Bitcoin mining pool.The cost of delay isn’t limited to business decisions, Murphy said. "The cost of continued delay is not abstract — it is measured in jobs that never materialize, companies that relocate, and a generation of technological leadership that moves offshore," he wrote.DCG’s priorities  keeping digital-asset jobs and investment in the U.S., protecting consumers, protecting developers whose software underpins the technology, and replacing what the firm calls “regulation-by-enforcement” with predictable rules.Why CLARITY Act Is Important If the CLARITY Act is passed, market watchers expect clear standards to allow stablecoin issuers such as  to operate more predictably rather than navigating conflicting government instructions. Bitmine Immersion’s (BMNR) Tom Lee said if passed it could open flood gates for institutional crypto adoption.Coinbase (COIN) CEO Brian Armstrong on Tuesday predicted that crypto policy would be a deciding factor in who wins in the midterm elections. However, some industry leaders, like Anthony Pompliano, believe that Bitcoin’s (BTC) future outlook does not depend on the passage of the bill.BTC’s price struggled to stay above $64,000 in midday trade amid broader uncertainty in the market following President Donald Trump’s threats to “hit Iran hard” if negotiations fail. On Stocktwits, retail sentiment around BTC remained in the ‘bearish’ zone, accompanied by ‘low’ levels of chatter over the past day.Other major cryptocurrencies also traded in the last 24 hours, trimming gains seen earlier in the day.