Cuomo Warns Congress to Pass CLARITY Act Amid Fears of US Falling Behind in Digital Asset Regulation

Former New York Governor Andrew Cuomo is urging Congress to pass the CLARITY Act, a bill that establishes a comprehensive federal regulatory framework for the U.S. digital asset market. Speaking at the SALT Conference in Jackson Hole, Wyoming on August 18th, Cuomo warned that the United States is already falling behind in the global race to regulate digital assets.

Cuomo emphasized that prolonged regulatory uncertainty has increased the burden on companies doing business in the United States, making it difficult for them to determine which regulations apply to each product. He noted that if a company wants to comply with regulations, it needs to know the rules of the game and what is permitted and what is prohibited.

The U.S. Senate entered its August recess without holding a vote on the CLARITY Act, but Senate Majority Leader John Thune plans to hold the first procedural vote to advance the bill on September 15th. Key sticking points remain, including stronger public official ethics provisions that Democrats are demanding be included in the bill.

Cuomo stressed that bipartisan compromise is essential for the CLARITY Act's passage and cautioned against attempts to assign blame for delays to either Democrats or Republicans. He pointed to the European Union, which has already implemented a digital asset regulatory framework applicable across all member states, arguing that the United States must move quickly as well.