The U.S. must pass the CLARITY Act to avoid losing global crypto leadership to China and Europe. China’s digital yuan is expanding cross-border pilots and is designed to challenge the dollar’s reserve currency role in trade corridors, including Southeast Asia and Africa. Europe’s MiCA framework took full effect in late 2024 and provides regulatory clarity that has encouraged major exchanges and stablecoin issuers to establish European entities. This shifts business and compliance infrastructure away from the U.S. while U.S. firms face ongoing uncertainty over crypto jurisdiction between the SEC and the CFTC. The GENIUS and CLARITY acts are advancing in the Senate with a target vote in 2026.
"Senator Lummis believes the U.S. must immediately pass the CLARITY Act to avoid losing global crypto leadership to China and Europe. China's digital yuan and Europe's MiCA framework have given rivals a regulatory edge over U.S. firms. The GENIUS and CLARITY acts are advancing in the Senate, targeting a 2026 vote."
"On the China front, concerns pertain to Beijing's digital yuan initiative, a central bank digital currency ( CBDC) designed to challenge the dollar's reserve currency status in cross-border trade corridors, particularly across Southeast Asia and Africa. The digital yuan has expanded its cross-border pilot programs, having processed nearly $55B by early 2026, per reports."
"Europe, for its part, has moved ahead with its Markets in Crypto-Assets (MiCA) regulation framework, which took full effect in late 2024 and has given European-licensed crypto firms a degree of regulatory clarity that U.S. companies still largely lack. MiCA has attracted several major exchanges and stablecoin issuers to establish European entities, routing business and compliance infrastructure away from the U.S. while American lawmakers continue to debate jurisdiction between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC)."
"This is our last chance to pass the Clarity Act until at least 2030. We can't afford to surrender America's financial future, Lummis said last month. Lummis framed global competition in stark terms, saying both China and Europe are leveraging blockchain and digital asset frameworks to challenge American financial leadership."
Read at news.bitcoin.com
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