Good morning, Chairman McHenry, Ranking Member Waters, Subcommittee Chairman Hill, Subcommittee Ranking Member Lynch, and members of the Subcommittee on Digital Assets, Financial Technology, and Inclusion. I am Adrienne Harris, Superintendent of New York’s Department of Financial Services (DFS or the Department). Thank you for inviting me to today’s hearing.

Strengthening the nation’s regulatory oversight of virtual currency is critical to protecting consumers and ensuring the safety and soundness of institutions. I look forward to sharing with you DFS’s expertise in the space as a prudential regulator of virtual currency since 2015. New York’s virtual currency regulatory framework is the most comprehensive in the country, built on the model of full-scope banking supervision (including, e.g., capitalization requirements, transaction monitoring and reporting obligations, and consumer protection requirements), but tailored for the unique considerations of the industry. It has served well to protect New York consumers, keep virtual currency entities safe and sound, and hold bad actors to account. I look forward to sharing with you some key features of the DFS framework and to offering continued assistance as you and your teams work to develop an appropriate framework for virtual currency regulation on a national level. State and federal regulators each have unique strengths that must be harnessed in developing a comprehensive regulatory framework for virtual currencies.

Full Statement (PDF)