Former New York Governor and Democrat Andrew Cuomo is pressing lawmakers to expedite passage of the Clarity Act, a bill that would establish a comprehensive regulatory framework for cryptocurrency in the United States by clarifying the division of oversight between the Securities and Exchange Commission and the Commodity Futures Trading Commission over digital assets.

Cuomo, who also serves as a director at cryptocurrency exchange OKX, told CNBC's Squawk Box on Thursday that the bill has become "highly political," with Democrats and Republicans primarily divided over the ethics language.

"We need clarity," Cuomo said. "Tell me the rules — I want to play the game fairly, but you have to tell me the boundaries, and that's what the Clarity Act is all about."

The Clarity Act was passed by the House of Representatives last year, but sticking points remain. A number of lawmakers are hoping the bill clears Congress before the August recess.

JUST IN: Former Governor of New York Andrew Cuomo says he thinks the Senate will resolve the Clarity Act ethics issues and pass the bill "We need Clarity…the world is passing us by" Pass it pic.twitter.com/oW40FdqHFr — Bitcoin Magazine (@BitcoinMagazine) August 6, 2026

Cuomo expressed confidence that the Senate would resolve the ethics-related disputes and ultimately pass the legislation.

The ethics dispute centers on Democratic efforts to address the Trump family's cryptocurrency ventures. Some Democrats have criticized President Trump's crypto business interests, alleging conflicts of interest stemming from his family's earnings through meme coins and the decentralized finance protocol World Liberty Financial. The White House has consistently maintained that no conflicts of interest exist.

A new bipartisan draft of the Clarity Act has been circulating that directly tackles the ethics question, banning government officials from promoting or profiting from cryptocurrency. Cuomo noted that Democrats want to "raise in the campaign" the issue of the Trump family's crypto earnings, which is why they continue to press the ethics matter.

New bipartisan language has been drafted to amend the ethics section of the bill, and the White House is reportedly reviewing it this week.

Cuomo also cautioned Democrats against focusing too heavily on conflict-of-interest allegations. "I think Democrats have to be a little careful because you want to talk about conflicts of interest, meanwhile you have Democrats who are buying stocks and they have inside information also," he said.

Pointing to international developments, Cuomo warned that the United States risks falling behind other jurisdictions that have already enacted crypto regulations. The European Union's Markets in Crypto-Assets regulation, which took full effect in 2024, has provided unified rules for digital asset firms operating across the bloc — a framework frequently cited by industry participants as a benchmark the U.S. has yet to match at the federal level.

"And again, the world is passing us by. OKX, we're doing gangbusters in Europe, and they're passing regulations, and the technology is flourishing," he said. "When you pass the regulations, and you allow innovation to develop, it takes off, and that's what's happening around the world, and it's not happening here in the U.S. because of the Clarity Act."

Cuomo made the remarks in connection with an appearance on CNBC's Squawk Box.