According to First Digital founder and CEO Vincent Chok, the delay in the US Senate's vote on the crypto market structure bill could give Hong Kong and Singapore more time to solidify their positions as digital asset hubs.
On Friday, Toomey's office confirmed to Cointelegraph that the Senate would not vote on the bill before the August recess. Toomey cited Democratic opposition and said the bill would be a priority when senators return in September.
Chok, whose company issues the FDUSD stablecoin, said the delay could give jurisdictions with clearer regulatory frameworks an advantage in attracting capital and talent, as uncertainty in the US weighs on institutional adoption.
He said the postponement leaves institutions without clear rules on market structure, asset custody, and oversight. "Markets can adapt to slower timelines, but what they struggle with is lingering uncertainty," he said in a statement sent to Cointelegraph.
Delay Heightens Concerns Over Enforcement and Innovation Abroad
Chok said regulatory progress outside the US will continue regardless of the CLARITY Act's timing.
"For Asia, this delay gives regional financial hubs like Hong Kong and Singapore extra time to demonstrate that clear regulation can coexist with innovation," he said.
May Li Ma, Deputy General Counsel of decentralized exchange aggregator 1inch, said that if Congress ultimately fails to pass the bill, the industry could face a return to "regulation by enforcement." Market participants would still have to rely on agency interpretations, case-by-case enforcement, and a fragmented patchwork of state rules for money transmitters and securities, she said.
Related: CLARITY Act Failure Could Crush Crypto Valuations: Bernstein
Ma contrasted this uncertainty with the European Union, where the Markets in Crypto-Assets (MiCA) regulation is already in effect. She said 1inch will continue to operate under its conservative, non-custodial, self-custody focused model while waiting for greater legal clarity in the US.
Wellington-Altus Chief Market Strategist James E. Thorne offered a more politically charged take, calling the delay a "surrender" by Toomey and a win for Senator Elizabeth Warren and the existing regulatory status quo. He said the persistent uncertainty will drive innovation overseas as other jurisdictions develop clearer regimes.
"Regulation should have been passed years ago," he wrote on X. "Instead, Washington chose to live in uncertainty, letting Warren and the banking lobby use uncertainty as a weapon, the SEC and Fed have backed that, and now Toomey holds CLARITY Act in procedural limbo."
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