New York State Department of Financial Services (NYDFS) head: New York plays an "important role" in the encryption ecosystem.

Source: Cointelegraph Original text: "New York State Department of Financial Services (NYDFS) Head: New York Plays an 'Important Role' in the Crypto Ecosystem"

Adrienne Harris, the head of the New York State Department of Financial Services (NYDFS), stated that New York plays an "important role" in the cryptocurrency ecosystem, particularly in shaping the regulatory framework for digital assets.

During the panel discussion at the Consensus 2025 conference held in Toronto on May 14, 2025, she mentioned that New York State is often asked to provide guidance for regulators. Harris said, "Regarding federal regulation and legislation... members of Congress often come to us (NYDFS) to inquire about our processes, regulations, guidance, and how they should consider legislation."

Harris stated that the NYDFS has been "too strict" and lacking in resources in the past. Now, under her leadership, she describes the NYDFS as "strict but fair" and points out that the size of the digital currency oversight team has doubled.

Harris took over as the head of NYDFS in September 2021, having previously worked in education, non-profit, and the private sector. In New York State, crypto businesses must obtain a BitLicense or a limited purpose trust license.

She said, "We have added nine regulatory guidance opinions, so obtaining a BitLicense or limited purpose trust license is still very difficult. But I think... it has been proven that FTX, Voyager, and Celsius did not pass our tests, so they cannot operate."

All three cryptocurrency companies declared bankruptcy in 2022, leading to widespread ripple effects in the industry and years of legal battles. FTX founder Sam Bankman-Fried and Celsius Network's Alex Mashinsky were respectively sentenced to 25 years and 12 years in prison. Voyager's founder Steven Ehrlich faces legal charges for allegedly misleading customers.

Stablecoin legislation has been a focal point for many advocates in the cryptocurrency industry, expected to be a significant topic of discussion in 2025. Although it has recently been seen as a bipartisan effort, the issue has evolved into a dispute after the Democratic Party withdrew its support for the GENIUS Act on May 8 due to concerns over President Trump's cryptocurrency business.

Nevertheless, Harris remains "hopeful" that Congress will ultimately pass stablecoin legislation. She stated:

"For nearly the past three years, we have been working with Congress, participating in discussions on various versions of their legislation regarding cryptocurrency and stablecoins."

According to Harris, all recent legislation related to the regulation of stablecoins has been reviewed by New York officials.

She said, "Whether it's the House or the Senate, whether it's the Republican Party or the Democratic Party, not a single version of the bill has come to meet with our team to ask us for feedback, technical assistance, and insights." She added that most of these suggestions have been incorporated into the legislation.

According to Harris, NYDFS still hopes to be the "state-level pathway for crypto companies."

Related news: CFTC commissioner to resign and become CEO of the Blockchain Association.