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Lummis says CLARITY Act would stop crypto exodus to Singapore and Dubai

Lummis says CLARITY Act would stop crypto exodus to Singapore and Dubai

Without regulatory clarity, digital asset firms may shift operations to places like Dubai or Singapore, the senator said.

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By Editorial Team
Edited by Vivian

The US Senate just took its most concrete step yet toward building a regulatory framework for digital assets. The Digital Asset Market Clarity Act of 2025, championed by Senator Cynthia Lummis of Wyoming, passed the Senate Banking Committee with a bipartisan 15-9 vote on May 14.

Senator Cynthia Lummis said the proposed CLARITY Act is necessary to keep digital asset innovation in the US. Speaking to FOX Business, she warned that crypto firms could otherwise relocate to jurisdictions like Dubai or Singapore, arguing those markets lack the level of consumer protections the US is developing.

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The Bitcoin advocate said the bill would provide the regulatory certainty needed for the industry to grow domestically while maintaining safeguards such as anti-money laundering compliance.

What the CLARITY Act actually does

The core idea is deceptively simple. The bill classifies most blockchain-native tokens as “digital commodities,” placing them under the oversight of the Commodity Futures Trading Commission (CFTC). Tokens that function as investment contracts, meanwhile, would remain under the Securities and Exchange Commission (SEC).

This distinction matters enormously for secondary market trading of digital commodities. Right now, exchanges and developers operate in a gray zone where the SEC might decide at any moment that a particular token is actually a security.

The legislation also doesn’t exist in a vacuum. It leverages regulatory principles released in June 2025 by Senators Tim Scott, Lummis, Thom Tillis, and Bill Hagerty. And it builds directly on the 2022 Lummis-Gillibrand Responsible Financial Innovation Act, a bipartisan bill that laid the intellectual groundwork but never made it across the finish line.

Over 100 crypto firms, including Coinbase and Ripple, have publicly called for swift passage of the bill.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.
REGULATION

Lummis says CLARITY Act would stop crypto exodus to Singapore and Dubai

Lummis says CLARITY Act would stop crypto exodus to Singapore and Dubai

Without regulatory clarity, digital asset firms may shift operations to places like Dubai or Singapore, the senator said.

By Editorial Team
Edited by Vivian

Share

Add us on Google

The US Senate just took its most concrete step yet toward building a regulatory framework for digital assets. The Digital Asset Market Clarity Act of 2025, championed by Senator Cynthia Lummis of Wyoming, passed the Senate Banking Committee with a bipartisan 15-9 vote on May 14.

Senator Cynthia Lummis said the proposed CLARITY Act is necessary to keep digital asset innovation in the US. Speaking to FOX Business, she warned that crypto firms could otherwise relocate to jurisdictions like Dubai or Singapore, arguing those markets lack the level of consumer protections the US is developing.

Advertisement

The Bitcoin advocate said the bill would provide the regulatory certainty needed for the industry to grow domestically while maintaining safeguards such as anti-money laundering compliance.

What the CLARITY Act actually does

The core idea is deceptively simple. The bill classifies most blockchain-native tokens as “digital commodities,” placing them under the oversight of the Commodity Futures Trading Commission (CFTC). Tokens that function as investment contracts, meanwhile, would remain under the Securities and Exchange Commission (SEC).

This distinction matters enormously for secondary market trading of digital commodities. Right now, exchanges and developers operate in a gray zone where the SEC might decide at any moment that a particular token is actually a security.

The legislation also doesn’t exist in a vacuum. It leverages regulatory principles released in June 2025 by Senators Tim Scott, Lummis, Thom Tillis, and Bill Hagerty. And it builds directly on the 2022 Lummis-Gillibrand Responsible Financial Innovation Act, a bipartisan bill that laid the intellectual groundwork but never made it across the finish line.

Over 100 crypto firms, including Coinbase and Ripple, have publicly called for swift passage of the bill.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.