Former NY Gov. Andrew Cuomo Urges Congress to Pass CLARITY Act as U.S. Falls Behind

Former New York Gov. Andrew Cuomo urged Congress to pass the CLARITY Act, arguing that regulatory uncertainty risks leaving the United States behind other major markets in digital assets.

Cuomo Calls for Lasting U.S. Crypto Rules

Cuomo made the comments Tuesday at the SALT conference in Jackson Hole, Wyoming. He said Congress needs to establish clear rules for crypto companies operating in the United States.

“It can pass because it has to pass because we’re already way behind,” Cuomo said. He pointed to other jurisdictions, including the European Union, which already operates a bloc-wide crypto regulatory framework.

The CLARITY Act would establish federal rules for digital asset markets. Among its key goals, the legislation would define when crypto assets fall under securities or commodities laws. It would also divide regulatory responsibilities between the SEC and CFTC.

Cuomo said clear laws would help companies determine what regulators expect before developing products. “You have to know the rules of the game if you want a company to comply,” he said.

Industry Seeks Rules That Survive Political Changes

Regulators can create crypto rules without Congress, but those policies could change under future administrations. Some industry executives have raised concerns that another administration could appoint regulators favoring stricter enforcement.

Former SEC Chair Gary Gensler pursued cases against dozens of crypto companies during the Biden administration. The SEC alleged in several cases that companies offered securities without meeting registration requirements. Gensler defended strong enforcement by pointing to fraud across the sector.

GSR Chief Legal and Strategy Officer Josh Riezman expects the current SEC and CFTC to advance new rules. However, he warned that future leadership could reverse course.

“But then the next administration, depending on how that shakes out, we can be looking very much like a potentially Gensler 2.0 type scenario,” Riezman said.

A CFTC spokesperson called congressional action important for creating “durable” rules. The spokesperson added that the agency remains prepared to support U.S. leadership in digital asset markets if Congress fails to act.

CLARITY Act Faces Senate Test in September

The Senate is expected to hold a procedural vote on the CLARITY Act on September 15. However, lawmakers still face disagreements over ethics provisions, law enforcement measures and stablecoin rewards.

Many Democrats support federal crypto legislation but have sought stronger safeguards covering money laundering, fraud and conflicts of interest. Senators Ruben Gallego and Thom Tillis are also awaiting a White House response to proposed ethics language.

Meanwhile, SEC Chair Paul Atkins has pursued separate regulatory changes for digital assets. CFTC Chair Michael Selig has also expanded derivatives activity, including perpetual Bitcoin futures.

Cuomo said regulation alone will not resolve every challenge facing the sector. Crypto scandals and links to illicit financial activity have also created trust concerns that the industry must address alongside clearer federal rules.

For more secure digital asset trading, investors can consider regulated crypto exchanges in Europe that operate under the region’s unified standards.