Former New York Governor Andrew Cuomo on Tuesday said the CLARITY Act’s collapse came down to pure politics, not any irreconcilable policy dispute.
Politics, Not Policy, Killed the Bill
Cuomo told Bloomberg Television said the bill had the best name of any recent legislation because it was actually about clarity.
“When CLARITY failed, ambiguity wins and unpredictability wins,” he said, adding that’s exactly what the crypto industry can’t tolerate.
He argued no differences in the bill were irreconcilable, framing the failure entirely as election-year maneuvering.
“There are no right reasons for that bill to fail,” Cuomo said, expressing hope a lame-duck Congress could still pass it once political temperatures cool after the midterms.
Cuomo pointed to his own record, having passed New York’s BitLicense framework in 2015 as one of the first state-level crypto regulatory regimes.
He acknowledged the license became too stringent over time, pushing companies like Kraken and Bitfinex out of the state, but defended its original goal of pairing innovation with consumer protection.
Why Cuomo Expects a Republican Wave to Reverse
Cuomo compared this cycle to 1994, when Democrats lost the House and Senate two years after Clinton’s election, calling the historical midterm pattern “more pronounced now.”
He argued voters aren’t necessarily endorsing the Democratic platform but are seeking balance after two years of Republican dominance.
“They’re saying the Democratic socialist agenda blows us away,” he said, distinguishing that energy from broader national appeal, which he doesn’t believe extends beyond major cities.
Cuomo said the crypto industry failed to mobilize its own voter base during the CLARITY Act debate, despite tens of millions of Americans holding crypto.
“Where were they in the debate about the CLARITY Act? Where are they as a political force?” he asked, arguing the industry can’t simply rely on political donations to pass legislation.
Why Regulation Can’t Replace Legislation
Cuomo also warned that SEC and CFTC rulemaking filling the gap left by CLARITY’s failure remains vulnerable if Congress changes hands.
He said that regulations can be challenged, investigated, and undone far more easily than actual law, which would add more chaos to the system rather than the clarity the industry actually needs.
Why This Ties Into Bitcoin’s Midterm Pattern
Cuomo’s read on the political mood lines up with a separate concern already circulating in crypto markets.
As Benzinga reported Tuesday, analyst Ali Martinez flagged that Bitcoin (CRYPTO: BTC) has fallen sharply after every midterm election since 2010.
The weak Republican approval numbers Cuomo cited only add to that uncertainty heading into Nov. 3.
Photo via Shutterstock
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