80% of crypto developers now live outside the US. 84.3% of derivatives volume trades on non-US exchanges. The Senate recess looms without a CLARITY Act vote.
Alpha Score of 38 reflects weak overall profile with weak momentum, weak value, poor quality, strong sentiment.
The Crypto Council for Innovation released a report warning that the United States is already losing its hold on the digital asset industry. Developers and trading activity are moving to jurisdictions with clear rules, the report said.
The report, titled "Why Digital Asset Market Structure Legislation Is Needed Now," said 80% of crypto developers now live outside the US. The American share of global developer talent fell from 38% to 19% over the past decade.
On the trading side, 84.3% of crypto derivatives volume occurs on exchanges beyond US oversight, according to the report. Roughly 88% of all global crypto volume in 2025 traded on non-US platforms.
Of the ten largest crypto exchanges by volume, only two are US-based: Coinbase and OKX. Both are moving into tokenized real-world assets, the report noted. Coinbase (COIN) carries an AlphaScala Alpha Score of 20 out of 100, indicating weak momentum.
The report compares the US situation unfavorably to other regions. The European Union's Markets in Crypto-Assets regulation took full effect July 1, 2026. Hong Kong required mandatory VASP licensing for centralized exchanges in June 2023. Jurisdictions like Singapore and the UAE have established their own regulatory regimes.
Tether, the largest stablecoin issuer, moved its base from the US to El Salvador. Circle, the second-largest, remains US-based. The report argues stablecoins are critical for maintaining the dollar's reserve currency role, given the dollar is used in 88% of global currency trades.
"We're losing market share and regulatory control," the report said. "The numbers don't lie – 84.3% of crypto derivatives volume, a rapidly growing market, happens on exchanges outside U.S. oversight."
The US House of Representatives passed the CLARITY Act in 2025. The Senate has not voted on it. The CLARITY Act odds recently sank to 27% after further delays.
Treasury Secretary Scott Bessent issued a statement Thursday:
"The Senate needs to vote NOW on this landmark legislation. The truth is that Senate Democrats are afraid to advance the Clarity Act as they fear Senator Warren and the 'Anti-Crypto Army' she once promised to build. In the days ahead, Leader Thune will put this theory to the test. Will Senate Democrats be on the side of American Exceptionalism, or will they opt to cede American leadership of a global industry for fear of the bespectacled squirrel's Left flank? America will lead or America won't."
The Senate is scheduled to begin its summer recess at the end of next week. No floor vote on the CLARITY Act has been scheduled.
Drafted by a large language model from the source reporting linked above, then screened by automated publishing checks. It is not read by a journalist before publication. Some articles cite our Alpha Score. Verify prices and figures against the original source. Educational coverage, not personalized advice.