Former New York Governor Andrew Cuomo delivered a warning during his appearance at the Token2049 conference in Singapore. Speaking in a panel discussion alongside OKX exchange CEO Star Xu, Cuomo addressed the future of US federal crypto regulation and the industry’s lobbying strategy.
Cuomo warned crypto executives that a lobbying strategy leaning too heavily toward the Republican Party is alienating Democrats. He emphasized that Democratic votes in Congress remain strictly necessary to pass legislation.
According to Cuomo, the crypto industry is on the wrong path if it assumes pouring funds into Republicans will ensure the smooth passage of the CLARITY Act crypto market regulation bill. The legislation requires bipartisan consensus.
Warning From Kalshi Odds
Prediction market Kalshi currently puts the probability of Democrats winning control of both chambers of the US Congress - the House and the Senate - in the upcoming midterms at 61%.
Facing these projections, Cuomo warned that Democrats could roll back pro-crypto initiatives launched by regulatory agencies if they take control of Congress. They would also wield the power to reject the CLARITY Act in its full form.
Debunking the Anti-Crypto Myth
Cuomo pushed back against the myth that Democrats are anti-crypto. He emphasized that crypto’s philosophy of decentralization and expanding financial inclusion for the unbanked actually aligns with core Democratic values.
During a Senate procedural vote last September, all Democratic senators and four Republican senators blocked the CLARITY Act over concerns regarding Trump family business conflicts of interest. Even so, seven Democratic senators subsequently expressed an open commitment to finding common ground.
Campaign finance data tracks political spending from crypto PAC Fairshake, which is backing 32 US House candidates in the midterm elections. These lobbying funds flowed to 19 Republicans and 13 Democrats.
For crypto industry participants, Washington’s political dynamics carry one fundamental certainty. Pouring money into a single party may win favor, but passing federal legislation still requires support from both sides.
Reported via Cointelegraph.
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
