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