Stalled Crypto Regulations Risk Political Reversal in the U.S.

Former New York Gov. Andrew M. Cuomo argues that the lack of a unified regulatory framework for digital assets in the United States is creating uncertainty for builders, investors, and consumers. He points to the proposed CLARITY Act, which passed the House in 2025 but has not advanced to the president, as a missed opportunity to clarify the roles of agencies like the SEC and CFTC in overseeing the crypto market.

With Congress stalled, Cuomo warns that agency-driven rulemaking, while helpful in the short term, lacks the durability of congressional legislation. He highlights the political risks, noting that regulatory actions could be reversed or constrained by shifting political priorities after elections. This uncertainty could impact long-term investments and market stability.

Cuomo contrasts the U.S. situation with other jurisdictions, such as Europe’s MiCA regulation and Singapore’s Payment Services Act, which provide clearer standards. He urges bipartisan legislation to reduce ambiguity and allow firms to invest with greater regulatory certainty. The immediate question remains whether Congress will revive the CLARITY Act or pursue alternative legislation before political shifts alter the trajectory of existing agency rules.