The U.S. risks losing digital asset business to Asia and the Middle East if it continues to delay crypto legislation or fails to implement a clear, certain regulatory framework for digital assets, said Peter Hughes, founder and CEO of Apex Group, a global financial firm.

Hughes said, however, that Europe will not benefit from Washington’s setback despite having its own rules in place since July 1.

“I think that the Clarity Act and the delay around that will lead to people finding other solutions elsewhere,” Hughes told CoinDesk in an interview.

Hughes singled out Europe’s Markets in Crypto-Assets Regulation (MiCA), describing it as slow to evolve and restrictive.

“But I do think there's opportunities in Asia, which are moving quickly; the Middle East; even places like Bermuda are moving quickly around having the right regimes to really produce the product for the future, and they'll step into this gap,” he said.

The U.S. Senate last month failed to pass the Clarity Act, which would have established clearer federal rules for digital assets and divided oversight between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). The bill fell short of the 60 votes needed in September after disputes over ethics provisions, stablecoin rewards and other regulatory concerns.

t Hughes believes faster-moving jurisdictions could attract business that might otherwise have gone to the United States.

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