Cuomo Says US Is Lagging on Crypto Rules, Urges Congress to Pass CLARITY Act

Former New York Governor Andrew Cuomo urged Congress to quickly pass the CLARITY Act, saying the US is already falling behind in the global race to regulate digital assets.

CoinDesk reported on August 18 that Cuomo made the remarks at the SALT conference in Jackson Hole, Wyoming. "The bill can pass, and it must pass," he said. "The US is already far behind."

The CLARITY Act would create a comprehensive federal regulatory framework for the US digital-asset market and assign oversight to different regulators based on asset type. If enacted, it would give crypto exchanges, token issuers and traditional financial institutions a clearer way to determine which rules apply to specific products.

Time is running short for the legislation. The Senate began its August recess without voting on the CLARITY Act. Senate Majority Leader John Thune plans to hold the first procedural vote on September 15 after lawmakers return, beginning formal consideration of the measure.

Major sticking points remain. Democrats want stronger ethics provisions in the bill. A compromise proposal drafted by Democratic Senator Ruben Gallego and Republican Senator Thom Tillis is awaiting a response from the White House. Other issues still requiring negotiation include law-enforcement provisions and stablecoin rewards.

Cuomo said prolonged regulatory uncertainty has increased the burden on companies trying to operate in the US. "If you want businesses to comply with the rules, they need to know the rules of the game," he said. "It has to be clear what is allowed and what is prohibited."

He also argued that the US needs to move faster because the European Union has already introduced a digital-asset regulatory framework that applies across member states. Without clear federal rules, companies and investment capital could move to overseas markets with more clearly defined regulatory systems.

Cuomo said passage of the CLARITY Act will require compromise from both parties. Disputes over ethics provisions and other individual issues should not derail the broader bill, he said.

He also raised concerns that if Congress fails to act, regulators could end up filling the legislative vacuum. That would make it harder for crypto and financial firms to draw up long-term business plans because the regulatory direction could shift whenever political power changes hands.

Cuomo is currently leading a joint venture between crypto exchange OKX and Intercontinental Exchange, the parent company of the New York Stock Exchange, to build infrastructure linking digital assets with traditional financial markets. He identified tokenizing securities such as US stocks on blockchain-based systems so global investors can trade them around the clock as a key business area.

Still, Cuomo said regulatory reform alone will not solve all of the crypto industry's problems. Trust remains an issue because of repeated industry scandals and concerns about illicit finance. "What you ultimately need is trust," he said. "You need integrity."