US national crypto legislation should resemble New York’s

https://thecryptostar.co/?p=18487

According to a state regulator, US national crypto legislation should resemble New York’s.

The head of the New York Department of Financial Services emphasized that federal law should be modeled after the rigorous requirements in her state.

In the wake of the FTX collapse, the superintendent of the New York Department of Financial Services (DFS) added his unique perspective to a national regulatory debate. According to Adrienne Harris, future federal crypto legislation should not supersede state regulatory frameworks.

Harris suggested that Washington legislators take a closer look at the New York state regulatory structure in her address, “Digital asset regulation: The state perspective”:

We would prefer a structure similar to what is in place in New York on a national level because, in my opinion, it is a very strong and long-lasting regime.

But Harris went on to say that we need more regulation, not less. She emphasized the thorough registration procedure in New York, which serves as a safety net for investors’ money and involves evaluations of the organizational structure of the company, the executive team’s fitness, financial statements, and anti-money laundering and know your customer regimes.

Peter Marton, the head of the NYDFS’s virtual currency division, brought up the fact that FTX has never received a BitLicense to conduct business in the state during the same panel discussion as Harris.

The New York state BitLicense, which was first issued in 2015, is famously challenging to obtain and has even drawn harsh criticism from New York City Mayor Eric Adams, who has long wanted to establish NYC as the “hub of the bitcoin sector.”

The DFS published regulatory guidelines for stablecoins backed by US dollars in June 2022. A stablecoin must be completely backed by reserves as of the end of each business day in accordance with the framework, and the issuer needs to have a redemption policy that has been approved in advance by the DFS and allows the holder the option to exchange their stablecoin for U.S. dollars.