US crypto rules need to survive the next election
US crypto rules could be vulnerable to political change after the midterms. Former New York Gov. Andrew Cuomo argues Congress needs to pass durable, bipartisan legislation.
The United States faces an uncertain future for its crypto regulations following the midterms. Former Governor Andrew Cuomo of New York argues that Congress must pass resilient, bipartisan laws to provide clear, long-term guidance for the industry. The CLARITY Act, which aimed to establish a national framework for digital assets, passed in the House in 2025 but failed to gain Senate approval, leaving a regulatory vacuum.
Federal agencies, notably the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC), have since taken aggressive action to fill this gap with new rules and frameworks for crypto trading platforms and specific assets. While these measures may spur market growth, they lack the stability of congressional legislation and have been enacted without formal approval, making them politically prone to change.
With Democrats expected to control one or both houses post-election, there's a significant risk these rules could be dismantled or altered, especially if they are perceived as benefiting specific donors or individuals. Congress could impede agency actions through various legislative tools, such as limiting funding, overriding decisions, or repealing regulations via the Congressional Review Act.
Additionally, Democrats might leverage political narratives around alleged corruption under the Trump administration and use oversight mechanisms like investigations and subpoenas to challenge agency actions. The absence of a unified regulatory framework hinders innovation and investment decisions, as companies cannot confidently plan for the US market.
International counterparts like Europe (MiCA regulation) and Singapore (Payment Services Act) have already established more stable regulatory environments. For the US to remain competitive and attract investment, it's crucial that the next Congress prioritizes bipartisan legislation to solidify digital asset regulations, ensuring clarity and consistency for businesses and investors.
Written by urgent.news from Cointelegraph's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
