The US Senate’s rejection of the Clarity Act – a landmark bill meant to regulate cryptocurrency market structure – has opened a window for Hong Kong to accelerate its digital asset ambitions, industry insiders say, even as the sector remains mired in a slump after a brief rally last month.
Beijing’s ban on crypto remains in force in mainland China, but Hong Kong has received approval to develop itself as a digital asset hub, with the stalled push in Washington presenting the city with what analysts called a “critical strategic window” to secure a regulatory lead.
US Senators on Wednesday blocked the bill, which was expected to accelerate the integration of digital assets into mainstream finance.
Senate Democrat Elissa Slotkin slammed the bill’s ethics provisions as “thin” in a post on X on Wednesday, and accused US President Donald Trump of “making billions of dollars” from crypto by “bilking everyday Americans out of their hard-earned money”.