Andrew Cuomo Urges Congress to Pass Clarity Act – What Happens Next

Key Takeaways

• Andrew Cuomo urged Congress to pass the Clarity Act to give the U.S. crypto industry clearer and more durable rules.
• The Senate returns September 14, with a cloture vote on the Clarity Act scheduled for September 15.
• Cuomo warned of rule changes under future administrations if crypto policy is left mainly to regulators.

Former New York Gov. Andrew Cuomo is calling on Congress to pass the Clarity Act, saying the United States is already falling behind other countries in establishing clear cryptocurrency rules.

On Tuesday at the SALT conference in Jackson Hole, Wyoming, Cuomo said, “It can pass because it has to pass because we’re already way behind.”

The Clarity Act aims to establish a federal regulatory framework for digital assets and clarify the roles of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). The goal is to provide clearer rules for crypto exchanges, token issuers, and financial companies working with digital assets.

Why Cuomo Wants the Clarity Act

Cuomo's main argument is that the U.S. needs a stable regulatory framework to remain competitive in digital assets.

He warned that without legislation from Congress, federal regulators could increasingly shape crypto policy. Agencies can introduce rules and guidance, but those policies can change with a new administration.

This uncertainty makes it harder for companies to decide whether to build products and invest in the United States.

Reuters reported that the Trump administration’s SEC and CFTC are already moving forward with crypto-related regulatory initiatives, but Congress is struggling to pass the Clarity Act. Legislation from Congress would provide a more lasting framework than agency actions alone.

Cuomo believes years of uncertainty have made it challenging for companies to build products in the U.S. while knowing where regulators will draw the line. 

He said, “You have to know the rules of the game if you want a company to comply.”

He compared the U.S. with Europe, where the European Union has already implemented a bloc-wide crypto framework. Without federal legislation, Cuomo believes that the U.S. risks losing business and investment to markets with clearer rules.

What is the Clarity Act?

The Digital Asset Market Clarity Act, commonly known as the Clarity Act, is designed to establish clearer federal rules for the U.S. crypto industry.

One of the Act’s objectives is to distinguish between assets falling under securities regulations and those that should be treated as digital commodities. The legislation would clarify responsibilities between the SEC and CFTC, including rules for digital commodities, securities, and market intermediaries.

For the crypto industry, this distinction matters as companies have faced uncertainty about which federal regulator has jurisdiction over tokens and products.

Therefore, a federal framework could make it easier for businesses to understand which requirements are essential before launching digital assets in the U.S.

Senate Vote Delayed Until September

The Senate left for its August recess without holding a procedural vote on the Clarity Act. Majority Leader John Thune has scheduled a cloture vote for September 15, after lawmakers return on September 14.

The Senate's cloture process requires a 60-vote threshold, making bipartisan support essential to move the legislation forward.

Key disagreements remain over ethics provisions, illicit-finance safeguards, and other provisions of the Senate legislation.

This means that the next stage of the Clarity Act’s progress depends not only on its crypto market provisions but also on whether Democrats and Republicans can agree on remaining political issues.

Why the Delay Matters

The delay comes as U.S. regulators continue to develop their own approach to digital assets.

While the SEC has been working on new crypto rules, the CFTC is also advancing initiatives involving the crypto industry. Reuters reported that these agencies' actions could bring near-term regulatory changes but might not offer the same long-term certainty as legislation passed by Congress.

This distinction is crucial for businesses.

When leadership changes, regulatory guidance can change. However, a law passed by Congress would establish a statutory framework that would be difficult to reverse through a simple administrative change.

This is the central concern behind Cuomo’s warning: the U.S. risks allowing other jurisdictions to establish clearer crypto rules while American companies continue to operate under a fragmented regulatory system.

Cuomo believes that Congress can still resolve the remaining disagreements and pass the bill.

He said, “Getting a bill through Congress will require compromise.”  Cuomo continued, “Disagreements over ethics provisions and other parts of the bill should not sink it.”

He believes that if Congress does not act, regulators will be left to fill the gap. This means that rules change each time political power shifts in Washington, making long-term stability an uphill task for crypto and financial firms.

Cuomo’s comments also reflect his current role in the crypto industry. He is co-chairing a 50-50 joint venture between OKX and Intercontinental Exchange, the owner of the New York Stock Exchange. The venture focuses on infrastructure that connects crypto markets with traditional finance.

One area Cuomo highlighted is tokenized securities. He said blockchain-based versions of assets such as U.S. stocks could eventually let investors worldwide access markets around the clock.

He also acknowledged that regulation alone will not solve the industry's problems. Cuomo said that crypto still needs to address concerns about trust, integrity, and links to illicit financial activity.

He said, “Ultimately, you need trust, you need integrity.”

What Happens Next for the Clarity Act?

The next major step for the Clarity Act is expected when the Senate returns from its August recess. Lawmakers are scheduled to return to Washington on September 14, with a cloture vote on the legislation scheduled for September 15.

This procedural step is crucial to the legislation. A successful cloture vote would allow the Senate to move forward with consideration of the bill. However, it would not, by itself, mean that the Clarity Act has passed.

Lawmakers still disagree over several provisions, including ethics and illicit financing. How lawmakers resolve these issues will determine whether the legislation can secure the bipartisan support needed to advance.

If the Clarity Act passes through the Senate, the legislative process would continue in the House. The House and Senate would need to resolve any differences before sending the bill to the president.

For the U.S. digital assets market, the September proceedings could therefore become a significant test of whether Congress can establish a federal statutory framework while giving regulators clearer rules to implement and enforce it.

Frequently Asked Questions (FAQs)

What is the Clarity Act?

The Clarity Act is proposed U.S. legislation that would create a federal regulatory framework for digital assets and clarify the respective roles of the SEC and CFTC.

When will the Senate consider the Clarity Act?

The Senate is scheduled to return to Washington on September 14, with a cloture vote on the Clarity Act scheduled for September 15.

What would the Clarity Act change?

The Clarity Act would establish clearer federal rules for digital assets and define the SEC and CFTC's regulatory responsibilities, including distinctions between securities and digital commodities.

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