New York Department of Financial Services Emphasizes Proactive Regulation Engagement
As federal crypto regulation evolves, New York Department of Financial Services Superintendent Adrienne Harris advises companies to engage proactively with regulators. At the Blockchain Association Policy Summit, she stated, “Never surprise your regulator,” emphasizing that regulators prefer early dialogue rather than reactive discussions during enforcement actions.
New York has been a pioneer in state-level crypto regulation, introducing the “BitLicense” program in 2014, which mandates businesses involved in digital asset activities to register with the DFS. This framework is now considered a benchmark for other jurisdictions.
Despite initial pushback from the industry—evidenced by at least 10 companies leaving the state—the BitLicense reflects the DFS's commitment to market access for investors. Harris clarified that regulators should not dictate market demands but focus on consumer protection and responsible industry growth.
While President-elect Donald Trump has not indicated his stance on state authority over the crypto sector, his administration's efforts to reduce federal agency sizes, including the SEC, could influence regulatory dynamics.