The New York Department of Financial Services (NYDFS) has said it sees no issues with federal crypto legislation, but the office also said it believes each state will maintain its current role in regulating digital assets.
Balancing Federal and State Powers
New York State Department of Financial Services Superintendent Adrienne Harris spoke at the Digital Asset Compliance and Market Integrity Summit in Manhattan on Wednesday. The event addressed the role of states and advocated for federal crypto legislation.
Harris said in her speech that her office is prepared to work with federal authorities, but insisted that states also need to play a role in order to be more effective. She noted that states have been able to move faster to regulate digital assets, countering the impression that state oversight could undermine regulatory standards. Adrienne Harris said:
“It’s really important to get the bills passed, to get the regulations written, but it’s still important for the states to have a role as well.”
Continuing to talk about the role of states in crypto regulation, the Superintendent noted that the NYDFS has one of the strongest digital asset regulations in the world. Harris, who is hopeful that federal crypto legislation will soon reach the public, also confirmed that the NYDFS is in talks with the US House of Representatives and Senate.
The NYDFS’s crypto division has grown to become one of the largest crypto regulatory agencies in the world, with 60 full-time staff.
New York’s support for federal and state crypto regulation aims to balance digital asset security and innovation. The NYDFS’ BitLicense framework and increased staffing demonstrate its commitment to regulating the industry. Its approach of preserving the role of states in collaboration with federal legislation aims to create a more effective regulatory environment.
Cryptocurrency Regulations
Congress, the SEC, the New York Department of Financial Services (NYDFS), the Treasury and the Fed all argue that cryptocurrencies can exist in the US, subject to the rules. However, we have also seen that tangible steps have not been taken at the desired level for years. Cryptocurrency companies in the US are being directed to walk a straight line, blindfolded. However, neither their eyes can see nor is there a straight line.
While many companies have moved their headquarters to countries such as UAE, Qatar, Singapore due to the lack of necessary regulatory guidance, Coinbase, Ripple $0.586798 Giants like have announced that they will continue the fight by staying in America. If Trump is elected, this will be a significant gain for cryptocurrencies and we will probably see tangible crypto laws. However, Harris also promised to focus on the rules in the scenario where she wins the election.
Disclaimer: The information contained in this article does not contain investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
