Digital Currency Group (DCG) urged the U.S. Congress to swiftly pass the CLARITY Act, which sets out the market structure for cryptocurrencies. It raised concerns that prolonged regulatory uncertainty in the United States is shifting leadership in the global crypto industry overseas.

Bitcoin Magazine reported on July 29 that DCG, in a statement, said the draft CLARITY Act under discussion would provide the regulatory clarity the crypto industry needs. It urged Congress to move quickly.

DCG said, "The current draft contains the level of regulatory certainty needed for the industry to grow and prosper responsibly," and called it "the product of serious negotiations and real compromise among industry, advocacy groups, and bipartisan lawmakers."

The statement comes as Congress pushes to process the bill before the August recess. The legislation was drafted on a bipartisan basis, but final agreement has not been reached as some Democratic lawmakers oppose the current revision.

DCG is one of the investment firms representing the U.S. crypto industry. It has invested in more than 200 blockchain and cryptocurrency companies and counts Grayscale, a spot bitcoin ETF manager, as a flagship portfolio holding.

DCG in particular stressed that U.S. industrial competitiveness is weakening. It said, "The importance of competition is greater than ever," adding, "The United States has long been at the center of technological innovation, but is now losing leadership at a startling pace." It added that crypto companies, developers and investment capital are considering Singapore and the United Arab Emirates (UAE), among others, as business bases.

The CLARITY Act is a bill that clearly defines regulatory authority and market structure for cryptocurrencies in the United States. Republicans pushed for legislation again this year after it passed the House last year, but discussions have been delayed due to differences with Democrats.

A recently released revision newly includes provisions restricting public officials and their families from issuing and promoting cryptocurrencies. This has been one of the demands Democrats have consistently made.

But political differences remain wide. Republicans are urging swift passage, but some Democratic lawmakers, including Senator Elizabeth Warren, are criticising the current bill, saying it could benefit President Donald Trump's crypto business and does not do enough to address financial crime.

By contrast, major financial institutions and industry groups are backing the revision. Major institutions including Fidelity and Goldman Sachs, crypto lobbying groups and some politicians said the current revision is workable.

In the market, whether a bipartisan agreement can be reached before the August congressional recess is seen as the biggest variable. If the bill passes, the U.S. crypto regulatory framework is expected to become clearer. If negotiations collapse, regulatory uncertainty is expected to persist, along with continued controversy over the overseas outflow of companies and capital.