Former New York Gov. Andrew Cuomo has called on Congress to move forward with the Clarity Act, warning that the United States is losing ground as other countries advance their crypto regulatory frameworks.

Speaking Tuesday at the SALT conference in Jackson Hole, Wyoming, Cuomo said the legislation is essential because the U.S. has already fallen behind in establishing clear rules for the digital asset industry.

The Clarity Act would create a federal framework for cryptocurrency markets and establish clearer boundaries between regulators overseeing different categories of digital assets. The legislation could give exchanges, token issuers and financial institutions greater certainty over the rules governing their products.

Senate Vote Still Ahead

The Senate adjourned for its August recess without voting on the Clarity Act. However, Majority Leader John Thune has scheduled the first procedural vote for shortly after lawmakers return next month.

Senate Democrats have pushed for additional ethics protections before agreeing to the legislation. Senators Ruben Gallego and Thom Tillis are awaiting the White House’s response to proposed ethics language.

Other sticking points include law enforcement provisions and rules surrounding stablecoin rewards.

Cuomo said the prolonged uncertainty around crypto regulation has made it harder for businesses to develop products in the U.S. Companies, he argued, need to know where regulators draw the boundaries so they can design products while remaining compliant.

U.S. Faces Growing Competition

Cuomo pointed to the European Union as an example of a region that has already established a unified approach to crypto regulation.

He warned that the lack of comparable federal rules in the U.S. could eventually push companies and investment toward markets where regulatory requirements are more clearly defined.

Cuomo said lawmakers will need to compromise to get the bill approved and rejected attempts to blame either political party for the delays. He argued that disagreements over ethics requirements and other provisions should not prevent Congress from passing broader crypto legislation.

If lawmakers fail to act, regulatory agencies will continue filling the gaps, Cuomo said. That could lead to rules changing as political leadership changes in Washington, making it more difficult for companies to make long-term decisions.

Cuomo’s Position in the Crypto Sector

Cuomo is also involved in a crypto-related business venture, leading a partnership between crypto exchange OKX and Intercontinental Exchange, the owner of the New York Stock Exchange.

The venture is working on infrastructure designed to bring cryptocurrency and traditional financial markets closer together.

Tokenized securities are a key area of interest. Cuomo said blockchain technology could eventually allow assets such as U.S. equities to be tokenized and made accessible to investors around the world at any time.

However, he said clearer regulations alone will not resolve the industry’s challenges. Crypto continues to struggle with reputational damage from scandals and concerns over its use in illicit financial activity.

For the sector to gain broader acceptance, Cuomo argued that it must ultimately demonstrate greater integrity and rebuild trust among investors and the public.