NY regulator warns against Congress overriding state crypto regimes

Quick Take

  • New York’s financial regulator points to its crypto license as model for national regulation.

New York's head financial services regulator wants Congress to look at her state's rules around crypto when thinking about a national model and warned against federal laws overriding state regimes. 

“When we go to the Hill, we say we want there to be a state path,” said Adrienne Harris, the New York Department of Financial Service’s superintendent. “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 particularly noted concerns that federal legislation could preempt, or override state regulatory regimes during her appearance today at the Brookings Institution in Washington, D.C.

The recent collapse of FTX hung over the entire event, which also included public remarks by Peter Marton, the NYDFS' virtual currency chief. FTX.US, notably, never got a BitLicense and consequently couldn’t legally operate in New York.

"They had an application pending, which they noted publicly. And it was pending,” Harris said, when asked about FTX.US' status by Aaron Klein, a Brookings senior fellow.