Federal crypto legislation could come with “keeping the mind” New York “

Love it or leave, the New York state was a force in crypto regulations.

Ten years ago, the state has created the first comprehensive regulatory framework of the United States for Customers, including key consumer protection, compliance against money laundering and guidelines for fighting money.

In September 2015. year, the New York Department of Financial Services (NIDFS) issued its first Bitlicense to circle the financial internet, allowing the company to run digital business activity in the state. Ripple Markets received other vitligens in 2016 years. The circle and Ripple became giant players in global cryptocurlenza and stablecoin industry.

Today, NIDFs regulate one of the largest pools of crypto companies in the world and is often cited as a gold standard For crypto regulation in the USA.

It is against that background Ken Coghill, Deputy Nidfs Deputy Virtual Currency Supervisor, appeared at Cornell Tech Blockchain conference to discuss “New ERI to American innovations in Kriptou.”

“We set up a Gardela”

Most companies that came to NIDFs for the Beatlicense are crypto-domestic companies, and are often new in the financial world and are not used to deal with regulators. Many times they do not fully understand that they have noticed Coghill at a conference in New York, adding:

If you want to start a job and the only person you risk is your own business, it is not in fact our concern. Just exist because you sell something to someone else, and you keep control over this product for someone else.

“We set up Gardel,” Coghill said, and it’s a job industry to understand how to stay inside those gardles. NIDFS can’t think about every element that will go wrong in business.

These days, the usual financial institutions are becoming interested in CRIPTO, add coogill. Large banks start offering a CRIPTO Custody Services, and others start providing settlement services. “The conventional (bank) model is primarily brought to the crypto (sphere), because people feel comfortable,” Coghill said.

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And while the NIDFs have been issued by 22 vitlices to this day, it seems ready to submit a subsidiary application from the trade company if and when materialized. “The basics per capita, we have multiple surveillance resources focused on the crypto company than we do for all other (non-crypto) company,” Coghill said. This includes 3,000 banks, insurance companies and other financial institutions.

Dubai’s Cripto Regulator

It was not a direct route that brought Coghill’s NIDF in July 2024. years. He spent the previous 12 years in the Middle East working for the Dubai Financial Services Agency, eventually becoming the head of the agency and supervisory supervision and technological risk.

It was “Cud” who took him to the Middle East first, reminded himself. “I went three years and stayed for 12 years,” I spend that time primarily as the official regulation of global system important banks or G-Sibs. There was called to develop a model of the Supervision of Cryptocurrency and so “spent the last six years by regulating the cryptocurrant in the Middle East.”

Finally, the opportunity appeared to return to the United States, where he had previously worked as a manager in the market regulation department at Chicago Exchange. Prior to that, he was the merchant options. The new task took over with NIDFs, among other reasons, because the “world looks at New York and the world looks at DFS” When it comes to regulation, he said with Cornell technology.

The moderator of the Neil DESILVA panel asked cohill as good regulation. “Good regulation is the regulation that does not prohibit the activity, but it applies appropriate gardles that reduce the risk for clients,” he replied. Cannot fully eliminate the risk; It should roll all business activities overturn.

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It compares the regulation on the pendulum constantly rocking between the two extremes: too indulgent and too restrictive. “The pentulum was overly switched to one end of the Regulation in the last few years (ie too restrictive). Now rocking back.”

What makes the state regulator by a terrible regulatory activity in Washington, DC at the federal level these days? There seems to be some “positive droplet” behind cryptocurrency and stablecoin, I was noticed by DESILVA, and the former chief financial officer for digital currencies of Paypal and remittances.

Oil pipeline according to Washington

“For DFS, it is largely business as usual,” Coghill commented. This is because the state of New York had a crypto rules in place for a long time. In fact, “greater than what happens in Washington now” – at the federal level – under the influence of what we did in the last 10 years “at the state level.

The State Agency regularly communicated with powers to be in American capital regarding digital currencies. “We have a team that is practically seated in Washington and has discussions with members of the Congress, how it talks about what we think will work and what will not work.”

The CRIPTO NIDFS initiative was affected by other American countries. California Legislation on CRIPTO reforms (AB 1934), for example, was entitled to September 2024. years and regulating the state state in the amount of national needs for digital currencies – although Bitlicense’s bitlicensically strict licensing requirements are relatively strict.

https://www.youtube.com/vatch? v = rkeig7gj9em

Not everyone in the crypto industry is neglected with a grilled licensing regime in the state, declaring the bitline too expensive. Its login fee is $ 5,000 – too strict with detailed money laundering protocols and the necessary audits and mostly too obstacles for innovative crypto-domestic companies. Cripto Exchange Krakeken went out on the state When New York, for example, conducted his request of Bitlicense.

DESILVA asked that NIDFs actually views decentralized protocols compared to the way centralized financial institutions that historically regulated.

It is important to look at the actual purpose of the product, Coghill replied. What is his basic intention? Who is he serving and what are his good and bad influences? “There are a lot of innovations that are created without purpose except they earn a lot of money from their customers,” Coghill said. “And so it’s on us to filter them.”

“We are paid to look at everything in a dark, dark road. It’s not our job to look and say,” Yes, this is fantastic. “” Instead, they examine the potential product and ask, “How bad is it for efficiency?” Or “How bad is that for inclusion?”

How does it think that things will be played at the federal level this year in connection with the crypt and legislation of Stablecoin?

What will happen in the end (in Washington, DC)? Who knows? We could know six months from now on. We could know things next week. Things recently change very quickly.

Meanwhile, “We still accept applications. We are still processing these applications. We are still focusing on our basic goals: Market protection, protecting consumers, supporting innovation.”

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