Stalled Crypto Regulations Leave US Market in Limbo

The United States is still without a unified regulatory framework for digital assets, a situation that former New York Governor Andrew M. Cuomo argues is harming builders, investors, and consumers alike. In an opinion piece, Cuomo highlights the proposed CLARITY Act, which passed the House in 2025 but has since stalled, leaving the future of crypto regulation uncertain.

With Congress failing to advance the bill, federal agencies like the SEC and CFTC have taken the lead in crafting new rules. While Cuomo acknowledges that these efforts may provide short-term benefits, he warns that agency-driven regulations lack the durability of congressional legislation. He points out that these rules could be easily reversed or politically constrained, especially after the next election cycle.

Cuomo emphasizes that the regulatory environment for digital assets is highly sensitive to political control in Washington. He predicts that shifting political dynamics could lead to increased oversight, funding constraints, or even the repeal of existing regulations. This uncertainty makes it difficult for companies to plan long-term investments or for investors to operate with confidence.

To mitigate these risks, Cuomo suggests that the U.S. should look to other jurisdictions for inspiration. He cites Europe's MiCA and Singapore's Payment Services Act as examples of clear, stable regulatory frameworks that provide certainty for market participants. He urges Congress to prioritize bipartisan legislation that can reduce ambiguity and foster a more stable regulatory environment for digital assets.