Speaking this week at DACOM 2024, Superintendent Harris stated:
• The Superintendent does not contemplate any amendments to the BitLicense, even though the regulatory regime will be in effect for 10 years coming June.
• She said the BitLicense framework will continue to evolve instead through guidance, enforcement and other supervisory activity. She pointed to the agency’s 2018 guidance concerning Market Manipulation as an example, and how it might address such questions as insider trading.
• The Superintendent continued to highlight the important role of state regulators in any federal legislation enacted to cover digital assets.
• Regarding the evolution of DeFi, tokenization, and staking, the Superintendent said she did not intend to offer guidance at present, as she did not want to “front run” innovation. NYDFS would speak “when there is something meaningful to be said.”
• Finally, the Superintendent offered some suggestions on Best Practices before the agency:
o Make sure your compliance program continues to scale with the business
o “If we have to read about it in the media to learn about it, you are starting in a bad place”; ask for permission, not forgiveness
o Industry might be surprised that NYDFS sees its interests as more aligned with industry than industry would expect – take a consultative approach to regulatory and business issues
o Meet with the agency on a regular cadence – “not just when you need something from us.”