Regulatory Uncertainty Is Driving Crypto Offshore, Says Lummis
Washington’s long-running uncertainty over crypto oversight is back under the spotlight after Cynthia Lummis renewed her call for a single, coherent rulebook governing Bitcoin and digital assets.
Rather than introducing new restrictions, her argument is that the absence of clear boundaries has become the biggest risk — not just for the industry, but for U.S. economic leadership.
Key takeaways
- Senator Lummis is pushing for unified crypto market structure legislation
- Regulatory overlap is driving firms and capital offshore
- The proposal focuses on clear jurisdiction rather than new restrictions
- Bitcoin is positioned as a distinct asset requiring tailored rules
Lummis warns that years of overlapping authority and regulator-by-regulator enforcement have created a fog in which companies struggle to plan, invest, or innovate. In her view, the result has been predictable: firms choose to build elsewhere, capital follows them, and the U.S. slowly gives up its early advantage in digital finance.
For far too long, unclear rules have pushed digital asset companies offshore. Our market structure legislation changes that by establishing clear jurisdiction, strong protections, and ensuring America leads the way. Let’s get this done!
— Senator Cynthia Lummis (@SenLummis) January 2, 2026
One Problem, Many Regulators
At the core of the issue is fragmentation. Crypto businesses operating in the United States face a patchwork of agencies asserting jurisdiction over different aspects of the same activity. This has produced inconsistent guidance, retroactive enforcement, and a compliance environment that many firms describe as unworkable.
Market structure legislation, as envisioned by Lummis, would not rewrite the rules asset by asset. Instead, it would define who regulates what — setting clear lanes for oversight, aligning investor protections, and replacing uncertainty with predictability. The goal is to move away from regulation by enforcement and toward regulation by design.
Bitcoin as a Special Case
A central pillar of Lummis’ position is the idea that Bitcoin should not be treated like every other digital token. She argues that Bitcoin’s decentralized nature makes it fundamentally different from projects that rely on issuing entities, insiders, or centralized control.
By recognizing those distinctions, lawmakers could create rules that work for exchanges, custodians, and financial institutions without forcing Bitcoin into frameworks built for traditional securities. Lummis believes this clarity would unlock long-term investment and encourage institutions to engage more confidently with digital assets inside U.S. borders.
Why the Stakes Go Beyond Crypto
The implications extend far beyond traders and startups. Clear market structure rules could determine where the next generation of financial infrastructure is built — and which country sets the standards others follow. Lummis has framed the issue as a strategic decision: either the U.S. defines the rules of digital finance, or it adapts to frameworks written elsewhere.
Her renewed push adds pressure on Congress to move past piecemeal action and toward a unified approach. Whether lawmakers act remains uncertain, but the message is clear: regulatory ambiguity is no longer a neutral position — it is an active choice with long-term consequences for American competitiveness.
The information provided in this article is for educational purposes only and does not constitute financial, investment, or trading advice. Coindoo.com does not endorse or recommend any specific investment strategy or cryptocurrency. Always conduct your own research and consult with a licensed financial advisor before making any investment decisions.
Alexander Zdravkov is a person who always looks for the logic behind things. He has more than 3 years of experience in the crypto space, where he skillfully identifies new trends in the world of digital currencies. Whether providing in-depth analysis or daily reports on all topics, his deep understanding and enthusiasm for what he does make him a valuable member of the team.
