New York Department of Financial Services (NYDFS) Secretary Adrienne Harris recently attended the Ripple Swell event in Miami together with Ripple’s Attorney General Stuart Alderoty to discuss different levels of cryptocurrency regulatory strategies in the United States and how crypto players can effectively respond to regulatory challenges.
Regulators don’t like “surprises”
Harris shouted to the encryption industry during the discussion: "Please be proactive and transparent when facing regulatory authorities. Don't let us learn about problems through the media." She said that the last thing regulators want to encounter is unexpected situations. . Therefore, Harris suggested that encryption companies need to communicate with regulatory authorities in advance when formulating operational plans to avoid unnecessary misunderstandings.
Harris also said that the regulatory environment in New York is relatively open, and encryption companies are encouraged to bring their "five-year operation plans" to negotiate with us. She emphasized that maintaining open communication with regulatory authorities will help companies operate under legal and compliance supervision and enhance mutual trust.
European regulations are relatively complete, but the United States still needs to follow suit
Compared with Europe, the United States has made slower progress in cryptocurrency regulation. Europe currently has regulations such as the (Crypto Asset Market Act MiCA) and the EU (Fifth Money Laundering Prevention Directive AMLD5) that incorporates cryptocurrencies into anti-money laundering regulations, which can integrate European countries to jointly control cryptocurrencies.
However, in the United States, there are multiple regulatory agencies with different views on cryptocurrency and different regulatory directions, resulting in fragmented regulation in the United States. For example:
U.S. Securities and Exchange Commission (SEC): Treats cryptocurrencies as “securities,” especially crypto projects conducting ICOs. Currently, the SEC has also filed lawsuits against a number of ICO projects, accusing them of violating securities laws, such as unregistered securities offerings, causing some crypto players to choose to withdraw from the U.S. market.
Commodity Futures Trading Commission (CFTC): Treats crypto-assets such as Bitcoin and Ethereum as “commodities,” has jurisdiction over derivatives trading involving these assets, and also allows some regulated trading of Bitcoin futures and options.
Financial Crimes Enforcement Bureau (FinCEN): FinCEN considers cryptocurrency exchanges to be money services businesses (MSBs) and requires them to comply with anti-money laundering AML and identity verification KYC regulations.
In summary, the United States still has a lot of room for progress in establishing a unified and clear regulatory framework for cryptocurrency, which also limits the development speed of the industry.
(European crypto venture capital is growing rapidly, MiCA was overwhelmingly passed, and it fully entered the crypto jurisdiction)
This article Ripple Swell: NYDFS recommends that encryption companies proactively comply with regulations, and the US regulatory pace needs to catch up with Europe. First appeared on Chain News ABMedia.
