Former New York Governor Andrew Cuomo: The pace of tokenization has already outpaced the regulatory process in Washington.

TechFlow reports that on September 25, former New York Governor and OKX Director Andrew Cuomo wrote an article on CoinDesk stating that tokenization is accelerating from frontier experiments in financial markets into regulated mainstream markets. The pressing question is no longer whether blockchain will enter traditional capital markets, but how existing markets will adopt this technology and what rules will govern this transition.

Cuomo noted that the U.S. SEC introduced its "Innovation Exemption" framework on September 17, enabling qualified on-chain trading venues to trade select tokenized U.S. equities through permitted AMMs and liquidity pools within a five-year interim framework. Concurrently, the U.S. Senate earlier failed to advance the CLARITY Act by a margin of 49 to 50 votes.

He argued that while the SEC's temporary exemption offers space for experimentation in tokenized markets, it cannot substitute for a more durable legislative framework. Regulatory clarity is not merely a legal or political concern, but an economic one; given the mobility of capital and technology, a clearer and more predictable regulatory environment will dictate where financial institutions choose to invest, construct trading infrastructure, and deploy capital.