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Andrew Cuomo warns U.S. is falling behind on crypto rules
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Former New York Governor Andrew Cuomo warned that the United States is falling behind on cryptocurrency regulation and urged Congress to pass the CLARITY Act. Speaking Tuesday at the SALT conference in Jackson Hole, Wyoming, Cuomo said the bill must become law. "It can pass because it has to pass because we're already way behind," he stated.
The CLARITY Act would establish federal rules for the crypto market and define which regulators oversee different types of digital assets. This clarity is intended to help exchanges, token issuers, and traditional financial firms determine which laws apply to their products. The Senate adjourned for its August recess without voting, though Majority Leader John Thune has scheduled a procedural vote for when senators return next month.
Senate Democrats have asked for a stronger ethics provision before supporting the bill. Senators Ruben Gallego and Thom Tillis are waiting for the White House to respond to their proposed ethics language. Outstanding issues also include law enforcement provisions and rules regarding stablecoin rewards.
Cuomo argued that years of uncertainty have made it difficult for companies to build products while regulatory boundaries remain unclear. "You have to know the rules of the game if you want a company to comply," he said. He contrasted the situation with the European Union, which has implemented a bloc-wide framework for crypto.
Without federal legislation, Cuomo warned, the United States risks losing business and investment to markets with clearer rules. If Congress fails to act, regulators will fill the gap, meaning rules could change with each political shift in Washington. This would complicate long-term planning for crypto and financial firms.
Cuomo has a direct interest in the outcome, leading a joint venture between crypto exchange OKX and Intercontinental Exchange, owner of the New York Stock Exchange. The venture is building infrastructure to connect crypto with traditional finance. One focus is tokenized securities, which could allow assets like U.S. stocks to trade 24 hours a day worldwide.
Beyond regulation, Cuomo noted that the industry faces a trust problem due to scandals and links to illicit finance. "Ultimately, you need trust," he said, adding, "You need integrity." The future of digital assets depends on both legal clarity and public confidence.
