NYDFS Pushes for Federal Crypto Legislation but Advocates for States’ Role

Coinspeaker
NYDFS Pushes for Federal Crypto Legislation but Advocates for States’ Role

The New York Department of Financial Services (NYDFS) has said that there is nothing wrong with having federal crypto legislation. However, the office also believes that there is a place for state-level regulation that will see each state retain its existing role of overseeing digital assets.

NYDFS Superintendent Adrienne Harris shared this at the Digital Asset Compliance and Market Integrity Summit that was held in Manhattan on Wednesday.

NYDFS Advocates Balancing Federal and State Roles in Crypto Regulation

In her speech, Harris revealed that her office is more than ready to work with federal authorities. However, she also insists that there must be a role for the states for better effectiveness.

According to her, states have been able to move faster in regulating digital assets, which counters the impression that state oversight can actually derail regulatory standards. Adrienne Harris said partly:

“I think it’s really important that legislation gets passed, regulations get written, but it is still important that there is a role for the states.”

Still speaking about the role of states in regulating crypto, the superintendent stated that the NYDFS has one of the most robust frameworks for digital assets in the world.

She expressed optimism about federal crypto legislation making its way to the public very soon and also confirmed that the NYDFS has been holding discussions with both parties in the U.S. House and Senate.

The Evolution of New York’s BitLicense

Harris spoke extensively on New York’s crypto regulatory framework, popularly known as the BitLicense. First introduced over a decade ago, BitLicense has continued to help New York with overseeing crypto activities in the state, she claims.

According to Harris, the aim of the framework has always been the same. That is, to find a common ground for innovation and customer protection.

However, there is no denying that the times are different, and the crypto industry has not been the same. So, it has become necessary for the BitLicense to also evolve alongside the industry. Interestingly, though, it didn’t.

Harris claims that, though the framework has continued to evolve in response to industry developments, there haven’t really been any major changes to its approach.

Furthermore, the superintendent also attempted to show the dedication of New York to crypto regulation in the number of hands it has committed to work in that regard. She noted that NYDFS’s crypto division has grown to include 60 full-time staff members, making it one of the largest crypto regulatory bodies in the world.

Harris admitted that, initially, there were a lot of negative sentiments about the BitLicense. However, even those have changed recently, with lawmakers and the general public now paying closer attention to the regulation.

The BitLicense has its flaws, and some of the criticisms are justified, per Harris. However, it feels nice seeing the likes of California, Illinois, Nebraska, and other international bodies taking cues from it, she noted.

next

NYDFS Pushes for Federal Crypto Legislation but Advocates for States’ Role