A Major Crypto Firm Is Backing The Clarity Act. It Says The U.S. Is Losing Ground In The Industry
Digital Currency Group (DCG), one of the cryptocurrency industry’s largest investment firms, has urged the U.S. Senate to pass the Clarity Act, arguing that continued delays in establishing clear digital asset regulations are allowing competing financial hubs such as Singapore and the United Arab Emirates to attract crypto businesses and investment.
In a statement released Wednesday, Digital Currency Group said the current version of the legislation provides the legal certainty needed for the digital asset industry to expand responsibly while maintaining appropriate consumer protections. The company described the bill as the result of extensive negotiations involving lawmakers, industry representatives and policy advocates from both political parties.
“The competitive stakes could not be higher,” the company said, warning that regulatory uncertainty is encouraging companies, developers and investors to establish operations in jurisdictions that have already implemented comprehensive digital asset frameworks.
Today, DCG sent a letter to Senate leadership with a clear message: pass the Clarity Act.
As an investor, builder, and incubator in digital assets for over a decade, we’re urging Congress to choose clear rules over regulation-by-enforcement, protect U.S. leadership in… pic.twitter.com/8GAHpyI7hg
— DCG (@DCGco) July 29, 2026
The Clarity Act has become one of the most closely watched pieces of cryptocurrency legislation in Washington. The proposal seeks to establish a long-term regulatory framework for digital assets by defining when cryptocurrencies fall under the jurisdiction of the U.S. Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFTC). Supporters say those distinctions would give businesses greater certainty while helping protect investors and encouraging innovation within the United States, Bitcoin Magazine reported.
Lawmakers have spent more than a year negotiating the legislation. Although an earlier version advanced through the House in 2025, progress slowed after disagreements emerged over issues including stablecoin regulation, oversight of decentralized finance platforms and ethics provisions related to public officials’ involvement in digital assets.
A revised draft introduced in recent weeks includes additional restrictions that would prohibit senior federal officials and their immediate family members from issuing, promoting or endorsing cryptocurrencies while in office. The changes followed criticism from some lawmakers who argued stronger safeguards were needed to address potential conflicts of interest involving government officials and digital asset ventures.
Republican lawmakers have been pushing to move the legislation before Congress begins its August recess, arguing that regulatory uncertainty has persisted for too long. While bipartisan negotiations continue, several Democrats have said they believe the latest version still requires further revisions before they can support the measure.
Among the legislation’s most vocal critics is Senator Elizabeth Warren, who has argued the bill does not go far enough in addressing illicit finance risks and consumer protections. Warren has also expressed concerns that the legislation could create opportunities for public officials or politically connected individuals to benefit financially from cryptocurrency-related activities if stronger guardrails are not included.
Last week, a group of Democratic lawmakers released a joint statement saying they continue to support comprehensive cryptocurrency regulation but believe the current draft leaves significant issues unresolved. They called for additional safeguards before the legislation moves forward in the Senate.
Despite those objections, support from the financial sector has continued to grow. Major institutions including Goldman Sachs and Fidelity Investments have publicly expressed support for the revised legislation, arguing that a clearer regulatory framework would encourage institutional participation in digital asset markets and reduce legal uncertainty for companies operating in the sector. Several cryptocurrency industry associations have also endorsed the latest draft.
DCG’s endorsement carries particular weight given its role in the digital asset industry. Founded in 2015 by Barry Silbert, the company has invested in more than 200 blockchain and cryptocurrency businesses worldwide. Its portfolio includes Grayscale Investments, manager of the Grayscale Bitcoin Trust, as well as numerous blockchain infrastructure, trading and financial technology companies.
The company said the revised legislation reflects meaningful compromise between lawmakers and industry participants and argued that failing to establish clear rules risks weakening America’s position as a global center for financial innovation.
The Senate has not announced when it will vote on the legislation, but supporters are hoping lawmakers can reach agreement before leaving Washington for the August congressional recess.
