Former New York Gov. Andrew Cuomo is pressing Congress to pass the Clarity Act, arguing that the U.S. risks falling further behind other countries that have already established clearer cryptocurrency regulations.
Speaking Tuesday at the SALT conference in Jackson Hole, Wyoming, Cuomo said the legislation needs to become law because the U.S. is already behind its international peers in creating a workable framework for digital assets.
The Clarity Act would establish federal guidelines for the crypto industry and define the regulatory responsibilities of different agencies across various types of digital assets. Such clarity could help exchanges, token issuers and financial institutions determine which rules apply to their businesses.
Clarity Act Awaits Senate Action
The Senate entered its August recess without voting on the bill. Majority Leader John Thune has scheduled an initial procedural vote for shortly after lawmakers return in September.
Democratic senators are pushing for tougher ethics provisions as a condition for their support. Senators Ruben Gallego and Thom Tillis are waiting for the White House to respond to their proposed language.
Other unresolved questions include provisions involving law enforcement and incentives connected to stablecoins.
Cuomo said years of regulatory uncertainty have made it challenging for crypto companies to develop products in the United States. Without knowing where regulators will draw the line, companies face difficulty determining how to remain compliant while building new services.
U.S. Could Lose Investment to Other Markets
Cuomo highlighted Europe as an example of a jurisdiction that has moved ahead with crypto regulation. The European Union has already introduced a common framework governing digital assets across its member states.
He warned that continued uncertainty in the U.S. could encourage businesses and investors to move toward countries where the regulatory environment is more predictable.
According to Cuomo, passing the Clarity Act will require lawmakers to compromise. He dismissed attempts to assign responsibility for the delays solely to Democrats or Republicans, arguing that disagreements over ethics provisions and other details should not prevent the broader legislation from moving forward.
If Congress does not act, regulators will continue determining the rules, Cuomo said. That could make the regulatory environment less predictable whenever political control changes in Washington, complicating long-term planning for crypto and financial companies.
Cuomo’s Role in the Crypto Industry
Cuomo is also directly involved in the sector. He leads a joint venture between crypto exchange OKX and Intercontinental Exchange, the parent company of the New York Stock Exchange.
The venture is developing infrastructure intended to connect digital assets with traditional financial markets.
Tokenized securities are one potential area of growth. Cuomo said blockchain-based versions of assets such as U.S. stocks could eventually give investors around the world access to those markets 24 hours a day.
Still, Cuomo acknowledged that regulatory uncertainty is not the crypto industry’s only problem. High-profile scandals and the sector’s association with illicit finance have damaged public confidence.
He argued that rebuilding credibility will require the industry to demonstrate stronger integrity and earn greater trust from investors, businesses and the broader financial system.
