Former New York Gov. Andrew Cuomo says his interest in cryptocurrency began in 2011, as OKX launches a protection programme offering eligible US customers coverage of up to $500,000 against qualifying account takeovers.
Speaking at a virtual press conference on 20 October attended by Bitcoin.com News, Cuomo said traditional financial institutions and cryptocurrency companies were moving increasingly into the same territory.
“I started in 2011, I became interested in crypto,” Cuomo said, explaining that New York technology and economic development officials had introduced him to cryptography and blockchain technology.
Cuomo became New York’s governor in January 2011, when bitcoin was still largely associated with computer enthusiasts and early adopters. He presented his administration’s early interest as a technology initiative, rather than an attempt to encourage cryptocurrency speculation.
He also highlighted New York’s early cryptocurrency licensing framework, arguing that it showed the state had recognised the sector’s potential before Washington. Cuomo is now a board member at OKX and co-chair of its joint venture with Intercontinental Exchange (ICE), the parent company of the New York Stock Exchange.
OKX Shield, launched in the United States on Tuesday, provides eligible American customers with up to $100,000 of protection against qualifying account takeovers. There are no subscription or activation fees.
Qualifying VIP 1-3 customers can receive protection of up to $250,000, while qualifying VIP 4 and higher customers can receive up to $500,000. The scheme applies to certain unauthorised third-party takeovers involving phishing, malware and SIM-swap attacks.
Customers must activate a passkey, enable large-withdrawal protection and transaction verification, block web withdrawals and meet device-security requirements. Coverage is subject to eligibility conditions and exclusions, and does not provide a blanket guarantee against cryptocurrency losses.
Cuomo said the programme would test whether a financial business was prepared to put its own money behind its security claims. He later summarised the idea by asking: “Why should you trust OKX? Because OKX trusts OKX’s system?”
The initiative follows an earlier rollout in Europe, which Cuomo said had been met with an enthusiastic response. OKX hopes the scheme will make customers more comfortable holding assets on a platform seeking to compete with established financial institutions.
Tokenised shares and stalled legislation
Cuomo also discussed the OKX-ICE partnership and plans for tokenised American equities. Blockchain-based representations of shares could allow trading beyond conventional hours and geographical limits.
“This is a 24-seven world,” he said, questioning why stock markets should remain restricted to schedules inherited from an earlier era.
However, companies including Microsoft and Google parent Alphabet have objected to their shares being offered in tokenised form. Cuomo said those decisions should not be viewed as outright rejection of the technology, describing the Securities and Exchange Commission’s approach as an experiment that allowed companies to wait.
“There’ll be other companies that say: I want to be the first in the pool,” he said, adding that participation would depend on each issuer’s preferences, international demand and choice of trading venue.
Cuomo said the future of the CLARITY Act, which aims to establish federal rules for digital asset markets, would depend partly on November’s midterm elections and the make-up of the next Congress.
“So the CLARITY Act fails. There will not be a vote before the midterm election,” he said.
He urged lawmakers to put party politics aside and pass the legislation, contrasting Washington’s uncertainty with Europe’s more established digital asset framework.
“The CLARITY Act had a really great name and provided clarity,” Cuomo said. “I believe it is possible. I don’t believe the differences were that wide. I don’t believe there was a real impasse,” he added.
