Cuomo Presses for Crypto Legislation as U.S. Regulatory Race Heats Up

Former New York Gov. Andrew Cuomo is urging Congress to approve the Clarity Act, warning that the United States could lose its competitive position as other countries move ahead with comprehensive crypto regulations.

Speaking Tuesday at the SALT conference in Jackson Hole, Wyoming, Cuomo said the U.S. needs to establish clear digital asset rules because it is already trailing other major markets.

The Clarity Act would create a federal framework for the cryptocurrency industry and clarify which regulators would oversee different classes of digital assets. The rules could give crypto exchanges, token issuers and traditional financial companies greater certainty about how their products should be regulated.

Clarity Act Still Awaits Senate Vote

The Senate entered its August recess without taking up the legislation. Majority Leader John Thune has scheduled an initial procedural vote for shortly after lawmakers return next month.

Senate Democrats are seeking additional ethics safeguards before backing the measure. Senators Ruben Gallego and Thom Tillis are awaiting a response from the White House regarding their proposed ethics provisions.

Lawmakers are also still negotiating other areas of the legislation, including law enforcement measures and provisions involving stablecoin rewards.

Cuomo said the lack of clear rules over several years has made it harder for companies to develop crypto products in the U.S. He argued that businesses need to understand the regulatory boundaries if they are expected to comply with the law.

U.S. Risks Losing Business Overseas

Cuomo contrasted the U.S. approach with Europe, where the European Union has already established a unified regulatory framework for crypto assets.

He warned that continued uncertainty could push businesses and capital toward jurisdictions where companies have greater clarity about the rules.

Passing the legislation will require compromise from both parties, Cuomo said. He rejected efforts to blame either Democrats or Republicans for the delay, arguing that disputes over ethics provisions and other details should not prevent the broader bill from becoming law.

If Congress fails to act, regulators will continue setting policy through existing authorities, Cuomo said. That could leave companies facing regulatory shifts whenever political control changes in Washington, making long-term planning more difficult.

Cuomo’s Role in Crypto

Cuomo also has a direct connection to the crypto industry. He is leading a joint venture between crypto exchange OKX and Intercontinental Exchange, which owns the New York Stock Exchange.

The partnership is developing infrastructure aimed at connecting cryptocurrency markets with traditional finance.

Tokenized securities are among the areas being explored. Cuomo said blockchain technology could eventually allow assets such as U.S. stocks to be tokenized and made available to investors globally around the clock.

Still, he acknowledged that regulatory uncertainty is only one of crypto’s challenges. The industry continues to face reputational problems stemming from scandals and its association with illicit finance.

Cuomo said broader adoption will ultimately depend on the industry establishing stronger standards of integrity and earning greater trust.