Regulatory uncertainty is driving blockchain investment out of the United States

Blockchain innovation and investment are leaving the United States. Treasury Secretary Scott Bessent warns that regulatory uncertainty is pushing firms to jurisdictions like Abu Dhabi and Singapore, which offer transparent compliance standards and predictable licensing requirements. This shift occurs because the risks of operating domestically now outweigh the benefits. Bessent is calling on Congress to pass the Clarity Act to establish clear, nationwide rules for digital assets. The House passed its version of the bill in July. A key sticking point in the Senate remains whether the bill should prohibit firms from paying interest or yield-based rewards on stablecoins, a restriction lobbied for by traditional banks.