Former New York Gov. Andrew Cuomo has urged lawmakers to approve the Clarity Act, warning that the United States is losing ground to other countries that have moved faster to establish crypto regulations.
Speaking at the SALT conference in Jackson Hole, Wyoming, on Tuesday, Cuomo argued that the legislation must advance because the U.S. is already significantly behind its global competitors in creating clear rules for digital assets.
The Clarity Act would establish a federal regulatory framework for crypto and clarify which agencies would supervise different types of digital assets. Clearer rules could give crypto exchanges, token issuers and traditional financial institutions a better understanding of which requirements apply to their products and services.
Clarity Act Faces a Tight Schedule
The Senate entered its August recess without voting on the legislation, but Majority Leader John Thune has planned an initial procedural vote for soon after lawmakers return next month.
Democrats in the Senate are seeking stronger ethics safeguards before supporting the bill. Senators Ruben Gallego and Thom Tillis are awaiting a response from the White House on proposed ethics language.
Several other issues remain unresolved, including law enforcement provisions and potential rewards tied to stablecoins.
Cuomo said prolonged regulatory uncertainty has made it more difficult for companies to build and operate crypto businesses in the U.S. Firms need to understand the boundaries of regulation if they are expected to comply with the law, he argued.
U.S. Could Lose Crypto Business
Cuomo compared the U.S. regulatory environment with Europe, where the European Union has introduced a common framework for crypto assets across its member states.
He warned that without federal legislation, American companies and investment could shift toward jurisdictions offering clearer and more predictable regulations.
Cuomo said lawmakers will have to find common ground if they want to get the bill across the finish line. He also rejected efforts to blame one political party for the delays, arguing that disputes over ethics requirements and other provisions should not derail the entire legislation.
Without congressional action, regulators would continue filling the regulatory gaps, Cuomo said. That could result in rules changing whenever political leadership shifts in Washington, creating additional uncertainty for companies making long-term investment and business decisions.
Cuomo’s Crypto Venture
Cuomo has a personal business interest in the development of U.S. crypto policy. He is heading a joint venture involving crypto exchange OKX and Intercontinental Exchange, which owns the New York Stock Exchange.
The venture is developing infrastructure intended to link cryptocurrency markets with traditional financial systems.
Tokenized securities are among its areas of interest. Cuomo said blockchain technology could eventually allow assets such as U.S. equities to be represented digitally and accessed by investors worldwide around the clock.
However, he acknowledged that regulation is only one of the industry’s challenges. Crypto continues to face concerns over major scandals and its association with illicit financial activity, creating a broader trust issue.
For the industry to mature, Cuomo said, it ultimately needs to build greater confidence among users, investors and institutions through stronger integrity and trust.
