The ongoing cryptocurrency market chaos has triggered regulators across the globe. In the United States, regulators have been alarmed and have expressed their individual opinions too.
Recently, a countrywide regulatory discussion was organized in the US keeping in sight the alleged collapse of one of the mega crypto companies. Adrienne Harris, superintendent of the New York Department of Financial Services (DFS) joined the session and expressed her opinions.
In her speech titled “digital asset regulation: the state perspective”, Harris said that any of the upcoming federal crypto legislation should not be prioritized over the state regulatory regimes. She also called out lawmakers in Washington to have a deeper look at New York’s state regulatory regime.
Harris in her speech also highlighted the need for a countrywide regulatory framework and suggested it be influenced by New York’s regulation regime considering the sustainability and robustness it is showing.
Further, she said that there is a requirement for more regulation and not less highlighting the extensive registration process in New York. The registration process there includes the thorough assessment of the firm’s organizational structure, the fitness of its executives, financial statements, and compliance with anti-money laundering (AML) and know-your-customer (KYC) standards to ensure substantial investors’ financial safety.
Adding in Harris’s speech, Peter Marton, NYDFS virtual currency highlighted that even bigger organizations like FTX could not manage to get a BitLicense to operate in the state, which is accused to be very difficult to obtain. It was introduced in 2015 and has been highly criticized by the state mayor Eric Adams who wishes to make the state the center of the cryptocurrency industry.
Earlier this year, DFS released a regulatory framework for USD-backed stablecoins. According to the framework, a stablecoin must be fully backed by a “reserve of assets,” which means that the reserve should at least be equal to the “nominal value of all outstanding units of the stablecoin as of the end of each business day” as reported by Todayq.