U.S. crypto laws should be akin to New York’s regulation

16 Nov 2022

The New York Department of Financial Services (DFS) superintendent has taken part in a national discussion following the collapse of the FTX exchange.

Adrienne Harris is of the opinion that any future federal crypto legislation should not take precedence to overstate regulatory regimes.

Harris’s speech headlined “Digital asset regulation: The state perspective” suggested lawmakers in Washington look closer at New York’s state regulatory regime, Cointelegraph reports.

“We would like for there to be a framework nationally that looks like what New York has because I think it is proving itself to be a very robust and sustainable regime.”

Harris added that more regulation is needed, not less. She stressed the lengthy registration process in New York, including the review of the company’s organisational structure and financial statements, as well as Anti-Money Laundering and Know Your Customer details to guarantee investors’ financial security.

During the same speech, NYDFS virtual currency chief Peter Marton referred to the FTX collapse saying the exchange was never given a BitLicense to operate in New York.

The so-called BitLicense in New York, launched in 2015, sparked immense criticism, as well as from New York City Mayor Eric Adams, who has been eyeing making New York the “centre of the cryptocurrency industry” for some time.

In June this year, the Department of Financial Services published regulatory guidance for U.S. Dollar-backed stablecoins, the Cointelegraph report adds. Within the guidance, stablecoins need to be backed by reserves at the end of each business day, and issuers require an approved redemption policy in advance by the DFS, giving holders the right to exchange the stablecoin for U.S. Dollars.