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As we approach what will undoubtedly be a new era of federal cryptocurrency regulation, the head of the government watchdog has some advice for businesses: Start getting involved now.

“Never surprise the regulator,” Adrienne Harris, supervisor of the New York Department of Financial Services, said at the Blockchain Association Policy Summit earlier this month.

“We are naturally risk-averse people,” she added. “We don't like to be surprised, so please talk to us proactively.”

Waiting until there has already been enforcement action to meet with regulators is a mistake, Harris said. She added that companies should have these conversations before submitting applications.

These comments come at a time when New York remains a leader in state-level regulation. It was the first country to design a BeetleSense. In 2014. This policy, which requires companies conducting digital asset activities Score With DFS, it came into effect the following year.

“Foreign jurisdictions and Congress over the last several years have actually been borrowing from the New York framework because it is now the gold standard,” Harris said.

Harris said New York's BitLicense may have been poorly received by the industry at first (at least 10 companies initially left the state when the regulations were announced), but the regulatory framework shows DFS is committed to letting investors access the markets they want. .

“It's not our job as a regulator to decide what the market wants and doesn't want, right? These tools are here,” she added. “This technology is here. Our mission is to protect consumers, protect markets and ensure responsible growth in the industry.

While President-elect Donald Trump has not commented on whether he will give more power to states to oversee the cryptocurrency industry, his administration's efforts to downsize several federal agencies, including the Securities and Exchange Commission, could eventually have that effect. .

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