Crypto’s newest US regulatory gains could be short-lived, Andrew Cuomo says, because a new Congress can challenge agency rules.
Cuomo sits on the board of crypto exchange OKX and co-chairs its joint venture with Intercontinental Exchange (ICE). He told Bloomberg that regulators’ stopgap rules are far more fragile than legislation.
Regulation Now Rests on Agency Rules
The Senate blocked the Clarity Act, a bill setting federal rules for crypto markets, on Sept. 15. The vote landed at 49 to 50, well short of the 60 needed to advance.
CNBC reported that Democrats wanted tougher ethics limits on officials profiting from crypto ventures, including President Donald Trump’s family. Four Republicans also voted no.
Meanwhile, regulators kept moving. The Securities and Exchange Commission (SEC) granted a five-year tokenized stock trading exemption on Sept. 17. It covers blockchain versions of listed shares.
Cuomo, a former US housing secretary, expects a new Congress to put such agency rules under a microscope. His shorthand for the risk was blunt.
“regulation is not legislation”
Andrew Cuomo, former New York Governor, Bloomberg
Cuomo Blames Politics and the Industry Itself
Cuomo said election-year politics killed the bill, not irreconcilable differences. He expects voters to reward Democrats for balance, not enthusiasm for their agenda.
He also expects a shift in Washington and pointed to prediction markets on the Senate. With Democrats in pole position for the midterms, that scenario carries weight.
Cuomo hopes the lame-duck Congress, the post-election session, passes the bill. Failing that, he wants it on desks by Jan. 1.
Sen. Thom Tillis filed a motion that lets the bill return for another vote, NPR reported. Still, a Democratic takeover of either chamber would make passage harder, the outlet noted.
Cuomo insists Democrats are not inherently against crypto. He oversaw the 2015 launch of New York’s BitLicense, the state’s crypto licensing regime. He later conceded it became too stringent for some companies.
He also faulted the industry. Tens of millions of Americans use crypto, he said, yet nobody organized them behind the bill.
Political donations alone, he added, cannot pass legislation. The open question is whether lawmakers revive the bill this year or agencies carry the industry into a new Congress.