Cuomo: Democratic Takeover Could Reverse US Crypto Regulatory Gains

Andrew Cuomo cautions that the newest US crypto rules might be undone, because a fresh Congress could reverse agency actions.

A board member of OKX and co-chair of its joint venture with Intercontinental Exchange (ICE), Cuomo told Bloomberg that regulators' stopgap measures are far less solid than statutory law.

Agency Rules Currently Underpin Crypto Regulation

On Sept. 15, the Senate voted down the Clarity Act, legislation that would have created federal crypto market standards. The vote was 49 to 50, well below the 60 votes necessary to proceed.

CNBC reported that Democrats had sought tougher ethics rules for officials benefiting from crypto ventures, including those linked to President Donald Trump's family. Four Republicans also opposed the motion.

Meanwhile, regulators advanced their own efforts. On Sept. 17, the Securities and Exchange Commission (SEC) issued a five-year exemption for trading tokenized stocks, covering blockchain-based equivalents of publicly listed shares.

Cuomo, a former US housing secretary, believes a new Congress will examine such agency measures closely. He summarized the hazard without mincing words.

“regulation is not legislation”

Andrew Cuomo, former New York Governor, Bloomberg

Cuomo Attributes Failure to Politics and Industry Missteps

In Cuomo's view, election-year nature of the current session killed the measure, not deep disagreements. He believes voters will reward Democrats for their balanced position, not for passionate support of their agenda.

He also anticipates a change in Washington, citing prediction markets on the Senate. With Democrats positioned to win the midterms, that scenario gains traction.

Cuomo hopes the lame-duck session, which follows the election, will pass the bill. If not, he wants it ready for action by Jan. 1.

Sen. Thom Tillis submitted a motion enabling the bill to be reconsidered, according to NPR. Still, a Democratic win in either chamber would complicate its passage, the outlet said.

Cuomo contends that Democrats are not naturally hostile to crypto. He directed the 2015 launch of New York's BitLicense, the state's licensing framework for digital assets. He later acknowledged it had become too burdensome for some firms.

He also blamed industry players. He noted that tens of millions of Americans use crypto, but none of them were marshalled behind the legislation.

Donations alone cannot push a bill through, he argued. The remaining question is whether lawmakers will take it up again this year or agencies will carry the sector through to a new Congress.