Andrew Cuomo Says U.S. Must Act Fast to Avoid Falling Behind on Crypto

Former New York Gov. Andrew Cuomo called on Congress to approve the Clarity Act, arguing that the United States is already lagging behind other nations in establishing a clear regulatory framework for crypto.

Speaking Tuesday at the SALT conference in Jackson Hole, Wyoming, Cuomo said the legislation needs to move forward because the U.S. is already “way behind” in the global crypto race.

The Clarity Act is designed to establish federal rules for digital assets and clarify which regulators have authority over different categories of crypto. Greater clarity could help exchanges, token issuers and traditional financial institutions understand which regulations apply to their businesses and products.

A Narrow Window for Action

The Senate entered its August recess without holding a vote on the Clarity Act. However, Majority Leader John Thune has scheduled an initial procedural vote for shortly after lawmakers return next month.

Senate Democrats are seeking stronger ethics safeguards before backing the legislation. Senators Ruben Gallego and Thom Tillis are currently awaiting a response from the White House regarding their proposed ethics language. Other unresolved matters include law enforcement provisions and rewards associated with stablecoins.

Cuomo argued that years of regulatory uncertainty have made it difficult for companies to develop crypto products in the U.S. without knowing where regulators might draw the boundaries.

Companies, he said, need clear rules to understand how they can operate within the law and distinguish compliant activities from those that cross regulatory lines.

U.S. Risks Losing Ground to Europe

Cuomo pointed to Europe as an example of a market that has moved further ahead on crypto regulation. The European Union has established a unified framework for digital assets across the bloc.

Without comparable federal legislation, he warned, American businesses and investors could increasingly move toward jurisdictions where regulatory requirements are more predictable.

Passing the Clarity Act will require lawmakers from both parties to compromise, according to Cuomo. He rejected efforts to place responsibility for the legislative deadlock entirely on Democrats or Republicans, arguing that disputes over ethics rules and other provisions should not prevent the broader legislation from advancing.

If Congress fails to establish a framework, Cuomo said regulators will continue to fill the gaps. That could result in significant policy changes whenever political control in Washington changes, making it more difficult for crypto and financial companies to plan for the long term.

Cuomo Has a Stake in Crypto Regulation

Cuomo also has a business interest in how the U.S. crypto framework develops. He leads a joint venture involving crypto exchange OKX and Intercontinental Exchange, the parent company of the New York Stock Exchange.

The venture is working on infrastructure designed to connect digital assets with traditional financial markets.

Tokenized securities are one area of interest. Cuomo said blockchain-based versions of assets such as U.S. stocks could eventually allow investors around the world to access those markets around the clock.

However, Cuomo acknowledged that regulatory clarity alone will not solve all of crypto’s challenges. The industry continues to face reputational issues stemming from high-profile scandals and its association with illicit financial activity.

Ultimately, he said, the crypto industry must establish greater trust and demonstrate stronger integrity.

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