New York's BitLicense Remains a Benchmark for Global Crypto Regulation

In the absence of federal guidelines, New York's crypto regulatory framework serves as a model for both domestic and international regulators, including Congress, as stated by Adrienne Harris, superintendent of the New York Department of Financial Services, at Consensus 2025 in Toronto. Harris emphasized that while obtaining regulation in New York can be challenging, the state's stringent standards have proven to be effective. She cited the examples of FTX, Voyager, and Celsius, which failed to meet New York's regulatory requirements and subsequently collapsed. New York has been at the forefront of crypto regulation among US states, having established the BitLicense and dedicating a 60-person team to oversee crypto firms. With federal regulations still in development, the US Treasury Department's Financial Crimes Enforcement Network (FinCEN) provides the only federal-level oversight, leaving the states to fill the regulatory gap. Harris' deputy, Ken Coghill, also spoke at Consensus, highlighting the importance of preventing money laundering and other financial crimes. He noted that many crypto license applicants underestimate the amount of work required to become a regulated entity, with most ultimately failing to meet the necessary standards. Coghill stressed that applicants must demonstrate a thorough understanding of the risks associated with their business, saying 'you're not just presenting a product, you're presenting yourself.'