NYDFS SUPERINTENDENT HARRIS AND DEPUTY SUPERINTENDENT COGHILL TALK CRYPTO REGULATION AT CONSENSUS 2025

Some takeaways:

•  On the BitLicense generally:
o  Harris: New York has an outsized role to play; the BitLicense framework remains a model for the U.S. and the world
o  Coghill: DFS has been very careful to uphold standard, that is very why most entities do not make it through the application process

•     On the Application Process:
o  Harris: Team of 60 staffers in Innovation Division includes cryptographers, regulators with federal experience, and “crypto bros”
o  Coghill: principal focus in application process is on BSA/AML and cyber; with Tradfi businesses now applying, expect to see more applications granted

•        On Stablecoins and Memecoins:
o  Harris: DFS guidance to entities and consumers already covers memecoins;  licensed entities are responsible for policing and we are responsible that listed coins meet policies; tools available to DFS on both supervisory and enforcement side
o  Coghill: Regardless of legislative back and forth it is business-as-usual at DFS re: Stablecoins; 95 percent of issues are resolved through Supervision as opposed to Enforcement

•        On Trends:
o  Harris: Fastest growing sector in NYC is technology; crypto plus financial capital of the world are the perfect combination
o  Coghill: Is hearing less from applicants about disruption and more about how products will supplement Tradfi businesses such as payments