NYDFS Superintendent Advocates For Federal Crypto Legislation While Emphasizing State Roles

According to CoinDesk, New York Department of Financial Services Superintendent Adrienne Harris expressed support for federal legislation addressing cryptocurrencies but emphasized the importance of states retaining their regulatory roles. Speaking at the Digital Asset Compliance and Market Integrity Summit in Manhattan, Harris highlighted that states have been able to act more swiftly in regulating digital assets, countering the notion that state regulation leads to a 'race to the bottom' in oversight standards. Harris stated, 'We are maybe more eager than anyone to have a federal partner and to see federal legislation and regulation. 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.' She also mentioned her optimism about potential legislative movements in the House and Senate, noting that NYDFS has engaged with both parties in both legislative houses over the past few years. Discussing New York's BitLicense, which has been in place for nearly a decade, Harris noted its evolution and its role as a model for other regulatory frameworks globally, including those in Singapore and the EU. 'I think our approach hasn't evolved that much. The approach was always about, how do you sort of square these competing objectives of fostering innovation, but protecting consumers and markets,' she said. Harris emphasized the need to stay updated with industry developments while maintaining regulatory oversight. Harris also highlighted that NYDFS has one of the world's largest crypto units, with 60 full-time staff members dedicated to the sector. She observed that public perception of the BitLicense has become more accepting over time, a change she described as 'gratifying.' Federal lawmakers have also cited the BitLicense as an example. 'That's not to say that it's perfect, right? There are some really valid critiques, both in terms of the rule and the way it has been operationalized,' Harris acknowledged. 'But it's been so gratifying to see California, Illinois, Nebraska, and then the EU and Singapore; everybody sort of takes pieces.'