Apex Group Warns the U.S. Is Losing Crypto to Asia and the Middle East
Hughes points to delays around the Clarity Act and sees Asia, the Middle East, and Saudi Arabia offering faster room for crypto and tokenization projects.
Key Takeaways
- Peter Hughes warns that the U.S. could lose crypto and tokenization business to Asia and the Middle East if Washington keeps dragging its feet on clear legislation.
- The Clarity Act failed to get enough votes in September, leaving companies uncertain about the roles of the SEC and CFTC, according to Hughes.
- Apex Group launched a tokenization partnership in Saudi Arabia with droppRWA and Tokeny, while Europe has rules under MiCA but, according to Hughes, does not automatically benefit from them.
The United States risks losing crypto and tokenization business to Asia and the Middle East, according to Peter Hughes, founder and CEO of Apex Group, if Washington keeps dragging its feet on clear legislation. The head of the global financial services firm said Europe does have rules under MiCA, but that does not automatically benefit it, in his view.
Washington Keeps Companies in the Dark
Hughes said in an interview that the delay around the Clarity Act could push companies to look for solutions elsewhere. The law was supposed to create clearer federal rules for digital assets and define the roles of the SEC and CFTC, but it failed to get the required 60 votes in September.
According to Hughes, that creates uncertainty about how these products are regulated in the world's largest economy. He pointed out that the SEC and CFTC later came up with proposals of their own to partly fill the gap, but that this does not remove the political deadlock.
The executive described MiCA in Europe as slow-moving and strict. At the same time, he sees opportunities in regions moving faster, such as Asia, the Middle East, and Bermuda. In practice, he said, that means companies there are more likely to find room to build new blockchain products.
Saudi Arabia Is Drawing in Tokenization
Earlier this month, Apex Group announced a partnership with droppRWA and Tokeny to turn real-world assets into regulated blockchain investment products, starting in Saudi Arabia. That fits into a broader trend in which more and more countries are setting up their own crypto rulebooks; more than 103 countries have now introduced such frameworks, while MiCA in the European Union is often seen as a reference point. In Dubai too, companies are getting room to offer tokenized products, although rollouts are still sometimes delayed, as with Robinhood's license in Dubai.
Faisal Monai, CEO and founder of droppRWA, said Saudi Arabia has already changed its rules for real estate tokenization and for greater foreign participation in the property market. According to him, the link between a digital token and the legal ownership of the underlying asset remains especially important.
Why This Matters for Europe
For European crypto followers, this shows that regulation is not just about oversight, but also about where new products are built and sold. If the U.S. waits longer, that could further shift the global split of tokenization projects. For Europe, the main question is whether MiCA offers enough clarity and speed to keep companies in place, or whether stricter rules leave room for other regions instead.
