Harris stated, “Members of Congress regularly approach us [NYDFS] for information about our procedures, regulations, and advice on how to approach legislation concerning federal regulation and legislation.”

Harris acknowledged that the NYDFS had been “unnecessarily harsh” and resource-deficient in the past. However, she noted that the NYDFS now operates on a “tough but fair” basis under her leadership, with the digital currency oversight team having since doubled.

Before assuming her role at the NYDFS in September 2021, Harris had worked in the education, nonprofit, and private sectors. In New York State, crypto businesses must secure a BitLicense or a limited-purpose trust charter. Harris said, “We’ve added nine new regulatory guidelines, so securing a BitLicense or a limited-purpose trust charter remains quite challenging.”

However, the stringent regulations have proven their worth. Crypto companies such as FTX, Voyager, and Celsius, which failed to meet NYDFS standards and subsequently went bankrupt, stand as examples. Legal proceedings against these companies have taken years and caused industry-wide disruptions. FTX’s founder, Sam Bankman-Fried, and Celsius Network’s Alex Mashinsky received prison sentences of 25 and 12 years respectively, while Voyager’s founder, Steven Ehrlich, is currently facing legal charges for alleged customer deception.

Despite recent disputes over the GENIUS Act, Harris remains “hopeful” that Congress will eventually pass stablecoin legislation. She stated, “We’ve been collaborating with Congress on various aspects of their crypto and stablecoin legislation for nearly three years now.”

Harris also revealed that all recent legislations related to stablecoin regulation have undergone scrutiny by New York officials. “There isn’t a version of any of those bills, whether they’re from the House or Senate, Republicans or Democrats, that doesn’t seek feedback from our team,” she stated, adding that most of these suggestions have been integrated into the legislations.

According to Harris, the NYDFS continues to aim to be “a state path for crypto companies.”

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