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Apex Group CEO Peter Hughes says the U.S. Senate’s failure to advance the Clarity Act could encourage digital-asset firms to pursue opportunities in faster-moving jurisdictions, including Asia, the Middle East and Bermuda. His assessment is a warning about potential business shifts, not evidence that companies have already relocated; the bill’s future and the scale of any shift remain unclear.
Apex Group CEO Peter Hughes says the U.S. Senate’s failure to advance the Clarity Act could lead digital-asset businesses to consider jurisdictions in Asia, the Middle East and Bermuda, where he says regulators are moving faster. His comments describe a potential effect of continued U.S. regulatory uncertainty; the available report does not establish that firms have already shifted operations.
The Senate bill, which would have set clearer federal rules for digital assets and divided oversight between the Securities and Exchange Commission and the Commodity Futures Trading Commission, fell short of the 60 votes needed in September, according to the report. Disputes included ethics provisions, stablecoin rewards and other regulatory concerns. The setback leaves companies developing blockchain-based financial products without the proposed statutory framework.
“I think that the Clarity Act and the delay around that will lead to people finding other solutions elsewhere,” Hughes told CoinDesk. He said Asia, the Middle East and Bermuda were moving quickly to create regulatory regimes for future products. He also argued that Europe would not automatically benefit: he described the European Union’s Markets in Crypto-Assets Regulation, in force since July 1, as restrictive and slow to evolve.
U.S. regulators have taken steps of their own. The SEC and CFTC proposed crypto rules after lawmakers failed to reach agreement, the report said. Those proposals do not resolve the legislation’s fate, and the source does not detail how closely they would match the bill’s intended division of authority.
Regulatory Delays Could Shift Investment
Firms deciding where to develop, issue or distribute digital-asset products may consider jurisdictions where requirements are clearer or approvals arrive sooner. Such decisions could affect the location of new projects, investment and related financial services. Hughes’s comments describe a potential competitive risk, not a confirmed migration or a measured loss of U.S. business.
The issue extends beyond crypto exchanges. Hughes cited tokenized money market funds and regulated, yield-bearing stablecoins as possible tools for institutional finance and corporate treasuries. If companies can launch such products more readily in other markets, the United States could have less influence over their development. Adoption would depend on regulation, market demand, product safeguards and confidence in the underlying assets.
Hughes said tokenized funds might offer returns above bank savings accounts and could serve as collateral for borrowing. He cited a comparison of a 5% fund return with a 3% savings-account return; the report does not provide a time period, source or guarantee that investors would receive either rate. Returns vary, and digital-asset products carry risks, including potential loss. The figures are an example Hughes used to describe possible product appeal, not evidence of a typical or assured outcome.
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The Bill and Regional Alternatives
The Clarity Act was intended to establish a federal framework for digital assets and specify how responsibilities would be shared between the SEC and CFTC. Its failure to reach the Senate’s 60-vote threshold followed disagreements over ethics rules, stablecoin rewards and regulatory safeguards. The source does not report a new vote or a replacement agreement as of Oct. 24.
Hughes’s assessment draws on Apex Group’s work across 50 jurisdictions and its reported service of more than $3.5 trillion in assets. Earlier in October, Apex announced a partnership with tokenization firms droppRWA and Tokeny to develop regulated blockchain-based investment products, starting in Saudi Arabia.
DroppRWA founder and CEO Faisal Monai said Saudi Arabia had made regulatory changes to permit real-estate tokenization and increase foreign participation in its property market. He said a remaining task is connecting each token directly to the legal record for the underlying property. That link matters to investors seeking reliable information on whether an asset exists, its value and who owns it.
““I think that the Clarity Act and the delay around that will lead to people finding other solutions elsewhere.””
— Peter Hughes, Apex Group founder and CEO, speaking to CoinDesk
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Business Shifts Remain Unmeasured
The report does not identify companies that have moved activity out of the United States because of the bill’s failure, quantify any lost investment, or establish that Asia or the Middle East has already captured specific business. Hughes’s comments are an industry executive’s assessment of a possible outcome.
It is also unclear whether the Clarity Act will return for another Senate vote, whether lawmakers will agree on its disputed provisions, or how the SEC and CFTC proposals may develop. The source does not give a timetable for those steps. Saudi Arabia’s tokenization plans also face the infrastructure task Monai described: connecting tokens to legally recognized ownership records.
Potential returns, collateral use and broader access for tokenized funds remain contingent on product design, regulation and adoption. The 5% and 3% figures Hughes cited are a comparison, not a promise or a reported market-wide result. No information in the source establishes the risks or terms for a particular product.
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Senate and Regulators Set the Path
The immediate policy question is whether the Senate revisits the Clarity Act or whether lawmakers pursue a different agreement on digital-asset oversight. The source reports no scheduled vote, so the timing and prospects of further legislation remain unknown. Meanwhile, the SEC and CFTC proposals are the next regulatory developments identified in the report; their eventual content and effect will matter to businesses seeking clarity.
In Saudi Arabia, Apex Group’s announced partnership with droppRWA and Tokeny is set to focus on turning real-world assets into regulated blockchain investment products. Monai identified a direct link between each token and the legal record of its asset as a requirement for investor confidence. Whether the partners can establish that connection at scale, and how much investment such products attract, has not been reported.
Hughes expects tokenization to reach more institutional and individual investors over time, but he offered no firm adoption timetable. Further evidence of whether his competitive warning is borne out would include legislative action in the United States, regulatory changes elsewhere, and disclosed launches or business decisions tied to those rules.
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Key Questions
What happened to the Clarity Act?
The U.S. Senate bill failed to reach the 60 votes needed in September 2026. The report says disputes included ethics provisions, stablecoin rewards and other regulatory concerns.
Who says other jurisdictions could benefit?
Peter Hughes, Apex Group’s CEO, told CoinDesk that delays could lead businesses to seek alternatives in Asia, the Middle East and Bermuda. That is his assessment of a possible shift, not confirmation that companies have moved.
Why does Hughes say Saudi Arabia is relevant?
Hughes and droppRWA CEO Faisal Monai pointed to Saudi Arabia’s real-estate tokenization plans and increased foreign participation in its property market. Monai said a direct link between tokens and legal asset records remains necessary for investor confidence.
Does the report show that U.S. firms have already left?
No. It describes a risk of future business shifting but gives no examples or figures confirming that firms have relocated or that the United States has lost a specific amount of investment.
Are the returns cited for tokenized funds guaranteed?
No. Hughes compared a 5% tokenized money market fund return with a 3% bank savings-account return, but the report does not state a period or establish either as a guaranteed or typical rate. Investment returns can vary, and investors can lose money.
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