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.
Asanat Analysis — Why it matters
The fragility of US crypto regulation has become a structural vulnerability for the sector. Since 2021, crypto policy has swung dramatically with administration changes—from the Biden treasury's aggressive stablecoin proposals to the Trump era's lighter-touch approach. Without legislative codification, regulatory frameworks remain dependent on executive discretion and SEC/CFTC interpretation, creating persistent uncertainty that dampens institutional adoption and infrastructure investment. Cuomo's call for bipartisan legislation reflects a maturing recognition that the industry cannot build long-term business models on regulatory sandboxes that shift every election cycle.
The political economy challenge is acute: crypto regulation touches multiple jurisdictions (securities, banking, commodities, AML) and sits at the intersection of fintech innovation, consumer protection, and national competitiveness narratives. Each party has incentivized constituencies—progressive oversight advocates versus crypto-native Republicans—making genuine bipartisan compromise difficult. However, the 2024-2026 period may offer a narrow window: regulatory maturation has separated serious infrastructure players from fraud-prone projects, and international competitors (EU's MiCA framework, UK's FCA regime) are advancing ahead. A durable US framework could anchor institutional capital; its absence risks both regulatory arbitrage and relegation of US innovation to offshore jurisdictions.
The timing matters. Pre-election legislation faces lame-duck dynamics and primary pressures, while post-election windows close quickly as new administrations prioritize competing agendas. Congressional action on stablecoins, custody standards, or exchange licensing requires sustained bipartisan political will—a scarce commodity even on less divisive issues.