A former New York governor says tokenization is advancing faster than US regulatory legislation.

Former New York Governor Andrew Cuomo Said on Sept. 25 That Tokenization Is Outpacing U.S. Regulatory Legislation

On Sept. 25, Andrew Cuomo, the former New York State governor and an OKX board member, wrote in CoinDesk that tokenization in U.S. financial markets is moving faster than the regulatory system, and that rules need to catch up with technology and market development. The report was carried by BlockBeats.

A five-year exemption opens a controlled path

Cuomo highlighted the SEC’s Sept. 17 temporary “innovation exemption” framework, which permits qualifying on-chain trading platforms to trade tokenized shares of certain U.S. listed companies under specific conditions for five years. He presented it as a trial space for blockchain to enter regulated capital markets.

He emphasized that the framework is not deregulation. It allows testing only within clear limits: platform participants must obtain licenses, tokenized shares must carry the same rights and interests as traditional shares, smart contracts must be audited and deployed on public chains, and tokenized shares must stop trading if the underlying stock is suspended.

Senate stall shows the legislative gap

The former governor also pointed to the U.S. Senate’s failure on Sept. 15 to advance the CLARITY Act, a digital asset market structure bill. He said the outcome shows broad digital asset regulation still faces disagreement, but the tokenization market is not expected to slow because legislation has not been completed.

Certainty may decide where markets go

Cuomo argued that regulatory certainty is not only a legal and political issue. It also affects the future flow of capital, talent and financial infrastructure. The contrast he drew was between a fast-moving market experiment, now allowed on a five-year basis, and a slower process of building comprehensive rules.