In the absence of a unified federal approach to cryptocurrency regulation, New York’s framework stands out as a reference point for regulators both domestically and internationally. At the Consensus 2025 event in Toronto, Adrienne Harris, the head of the New York Department of Financial Services, articulated that while the process for achieving regulatory approval in New York is challenging, the state’s elevated standards have proven effective.

“The proof is in the pudding when you see that FTX, Voyager, Celsius didn’t pass our test and therefore couldn’t do business in New York,” she remarked, referencing companies that have since faced significant troubles.

As a leader in shaping regulations, New York pioneered the BitLicense initiative aimed at governing crypto enterprises, supported by a dedicated team focusing on this sector. In light of the evolving regulatory landscape, Harris emphasized that while Congress is still finalizing a regulatory structure, oversight by state authorities plays a critical role, especially as the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN) provides limited federal oversight.

Ken Coghill, Harris’ deputy overseeing digital assets, also spoke at the event, warning applicants of the extensive diligence required prior to obtaining a license. He highlighted the importance of clearly understanding and communicating the risks associated with their business operations.

“You’re not just presenting a product; you’re presenting yourself,” he stated.