Cuomo Urges Congress to Pass CLARITY Act, Warns U.S. Is ‘Way Behind’ on Crypto Rules
Former New York Gov. Andrew Cuomo told a Jackson Hole audience on Aug. 18 that Congress has no choice but to pass the CLARITY Act, warning that the United States has already fallen behind other countries in establishing clear rules for digital assets. Speaking at the SALT Conference, Cuomo said lawmakers must resolve their differences and deliver a federal framework for crypto before the industry moves elsewhere.
“It can pass because it has to pass because we’re already way behind,” Cuomo said, according to remarks reported from the event.
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The CLARITY Act, formally the Crypto Clarity Act, would establish a federal market structure for digital assets and clarify which products fall under the jurisdiction of the Securities and Exchange Commission (SEC) versus the Commodity Futures Trading Commission (CFTC). The bill passed the Senate Banking Committee in May with a 15-9 vote, but it has yet to clear the full Senate.
Cuomo: Businesses Need Regulatory Certainty Before They Invest
Cuomo argued that companies cannot confidently build or invest in the U.S. crypto market without knowing where regulators will draw the line between securities and commodities. He also cautioned against leaving the job to federal agencies, saying that rules could shift whenever political control changes in Washington.
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“Ultimately, you need trust. You need integrity,” Cuomo said, addressing the remaining disagreements that have stalled the bill.
Senate Democrats have pushed for stronger ethics protections, and disputes have also emerged over stablecoin rewards and law enforcement provisions. The ethics debate has drawn attention to President Donald Trump’s crypto business interests, adding another layer of complexity to the negotiations.
Cuomo acknowledged that Democrats have legitimate concerns but urged lawmakers to work through them rather than allow the disagreements to kill the legislation.
September 15 Cloture Vote Will Test the Bill’s Support
The Senate left Washington for its August recess without voting on the CLARITY Act. Senate Majority Leader John Thune has now scheduled a procedural vote for Sept. 15 at 2 p.m. ET, according to Sen. Cynthia Lummis.
That vote is a cloture motion, meaning the bill will need 60 votes to end debate and advance. It is not the final vote to make CLARITY law, but it will serve as a critical test of whether the legislation has enough bipartisan support to move forward.
The bill’s path remains difficult. Prediction markets have placed the odds of the bill becoming law in 2026 at roughly 20%, reflecting the narrow margin for success in a divided Senate.
What the CLARITY Act Means for the Crypto Industry
For crypto exchanges, issuers, and investors, the CLARITY Act would replace the current patchwork of enforcement actions and guidance with a statutory framework. Under the bill, digital assets that are deemed sufficiently decentralized would likely fall under CFTC oversight, while those that function more like securities would remain under SEC authority.
Industry groups have largely backed the legislation, arguing that clear jurisdictional lines would reduce the need for costly legal battles and encourage more companies to operate in the U.S. rather than relocating to friendlier jurisdictions like the European Union, Singapore, or the United Arab Emirates.
Critics, however, have raised concerns that the bill could weaken investor protections or create loopholes for certain crypto products. The ethics fight in the Senate has also slowed momentum, and it remains unclear whether Democrats will supply the votes needed to reach the 60-vote threshold.
The Sept. 15 cloture vote will give the clearest signal yet of whether the CLARITY Act can overcome its hurdles. If it fails, the bill’s prospects for 2026 would dim considerably, and the crypto industry would likely face continued regulatory uncertainty heading into the next election cycle.
