NYDFS chief calls for urgent federal crypto legislation

New York’s top financial regulator, Adrienne Harris, is calling for urgent federal legislation on crypto. 

As the Superintendent of the New York Department of Financial Services (NYDFS), Harris believes that while federal laws are needed, states should continue to have authority over crypto assets.

Harris explains that states have been quicker to act on crypto regulation than the federal government. She dismissed the idea that state regulation would lead to a “race to the bottom” in oversight. 

“We are maybe more eager than anyone to have a federal partner and to see federal legislation and regulation.”

New York’s BitLicense and the need for federal action

New York’s BitLicense has been around for nearly a decade, and it has faced both a lot of criticism and a lot of praise.

Despite that, Harris believes: “Our approach hasn’t evolved that much. It’s always been about balancing innovation with consumer protection.”

NYDFS has one of the largest crypto units globally, with 60 full-time staff dedicated to the industry. Harris said that the public’s perception of the BitLicense has become more accepting over time.

Even federal lawmakers have looked at it as a model.

“It’s not perfect,” Harris admitted, “but it’s been gratifying to see other places like California, Illinois, and even the EU and Singapore adopting parts of it.”

Still though, the federal government remains unyielding. There’s been no real movement on crypto regulation from Congress.

Meanwhile, presidential candidate Donald Trump believes he can make the U.S. the “crypto capital of the planet” if he wins.

One of his big ideas is to create a National Bitcoin Stockpile, similar to the gold reserves. This would include all the Bitcoin currently held by the government worth over $5 billion.

He’s also proposing a “Bitcoin and crypto presidential advisory council” to guide policies that support the industry.

Trump has also launched World Liberty Financial, a decentralized finance (DeFi) platform for borrowing and lending within the crypto ecosystem using stablecoins.

But there are major concerns. Critics worry about potential conflicts of interest between Trump’s business dealings and his political ambitions.

If elected, how will his administration handle regulations that could affect his own financial interests in the industry?

Trump’s sudden embrace of crypto seems to be winning him support from the community. He’s been making appearances at crypto-themed events, and also most recently at PubKey, a Bitcoin bar in New York City. 

There, he met with supporters, promoting his crypto agenda while buying people burgers. The Trump campaign is raking in huge financial support from the community. He raised over $25 million at a single event.