Digital Currency Group (DCG) warned the Senate this week that failing to pass the Clarity Act will cost the US its lead in crypto innovation, handing the advantage to Singapore and the UAE. The long-awaited bill would establish clear federal rules for digital assets — something the industry has been asking for years. But the legislation, passed by Republicans in 2025, has been stuck in a deadlock this year, partly because banking chiefs raised concerns over stablecoin yield.
The warning from DCG
DCG, whose portfolio includes over 200 companies — most notably Grayscale, manager of the Grayscale Bitcoin Trust — told lawmakers the US is ceding ground to Singapore and the UAE in attracting talent, capital, and innovative companies. The firm argued the Clarity Act offers the certainty needed for the crypto industry to grow and thrive responsibly. Without it, DCG said, the US risks falling behind as other jurisdictions move faster on clear regulatory frameworks.
What's in the revised bill
A new draft of the Clarity Act includes a provision that bans federal officials and their families from issuing or promoting crypto. That change came after earlier criticism over potential conflicts of interest. The stablecoin yield issue — a key sticking point for banking regulators — remains unresolved in the current version. Major institutions including Fidelity and Goldman Sachs, as well as crypto lobby groups and politicians, have said the revised bill works.
The political standoff
Senator Elizabeth Warren criticized the draft, claiming it would allow President Trump to profit from crypto and benefit criminals. A group of Democrats last week stated the bill in its current form falls short. The bill was drafted with bipartisan input, but some Democrats are unhappy with the current version. The divide leaves the Clarity Act in limbo, even as industry pressure mounts.
What happens next
Lawmakers have been working on the Clarity Act since last year. The bill passed the Republican-controlled House in 2025 but stalled in the Senate this year. With DCG's warning now public, the pressure is on Senate leaders to find a compromise. Whether the revised bill can win over enough Democrats — or whether it will need further changes — remains the open question.
