This state’s watchdog chief has some words of advice for businesses as we move towards what will be undoubtedly a new age for federal crypto regulations: Get involved now.
“Never surprise your regulator,” Adrienne Harris, Superintendent of the New York Department of Financial Services (NYDFS), spoke at the Blockchain Association Policy Summit in early October.
“We are by nature risk-adverse people,” She also added. “We don’t like to be surprised, so come in and talk to us proactively.”
Harris says that waiting until an enforcement action is underway before meeting with the regulator is a big mistake. These conversations should take place before companies even submit applications, Harris said.
New York is a state that continues to lead the way in regulation. It was the very first state to implement a “BitLicense” Program in 2014 In 2014, the DFS implemented a policy that requires all businesses involved in digital assets to be registered.
“Foreign jurisdictions and Congress have been for the last several years really borrowing from the New York framework as now it’s the gold standard,” Harris said.
Harris says that although the BitLicense was initially poorly received (some 10 companies had left New York after the regulations were first announced), it is clear from the framework of the DFS commitment to allow investors access to markets.
“It’s not our job as a regulator to decide what the market wants or doesn’t want, right? These instruments are here,” She also added. “This technology is here. It’s our job to protect consumers, protect markets and ensure responsible growth in the industry.”
Although President-elect Donald Trump is yet to comment on the question of whether or not he will grant states more power to supervise the crypto industry in the future, the efforts made by his administration to reduce the size and scope of federal agencies such as the SEC could have this effect.
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