Adrienne A. Harris proposes a “crypto passporting” framework to facilitate cross-border operations between the US and the UK

According to Adrienne A. Harris, the outgoing Superintendent of the New York State Department of Financial Services (NYDFS)—New York’s primary financial regulator—there should be regulatory co-operation between the UK and US. 

Harris, who served on the NYDFS since 2021 and oversaw crypto licensing for firms like Coinbase and Circle, delivered a final speech to mark the achievement and a call to cooperate with the UK. 

Outgoing New York regulator hopes to see future cooperation 

In what is being called her final interview, Harris revealed support for the idea of UK and US crypto companies gaining access to each other’s markets, as well as plans to step down.

Harris believes regulatory co-operation under a scheme presents a “really interesting” opportunity, especially given the “borderless nature” of the crypto market. 

There is also the fact that US Treasury Secretary Scott Bessent and UK Chancellor Rachel Reeves have finally come up with plans to put together a US-UK task force. 

The plans were announced earlier this month. However, they provided little detail on what the area of focus would be. The body will be chaired by officials from both countries’ Treasury departments, and will consult with industry executives, then present a report within 180 days.

Harris’ statement comes amid an ongoing lobby attempt by the cryptoasset sector, which is expected to push officials to consider a US-UK scheme that would allow companies regulated in one market to operate in the other without needing a full authorization process.

“Co-ordinated regulation, including the potential for digital asset passporting, would enhance investor protection, cut compliance costs and make cross-border markets far more interoperable,” Simon Jennings, executive director of the UK Cryptoasset Business Council trade body, said. 

Harris said the DFS already had a secondment scheme with the Bank of England to exchange staff specializing in payments, crypto, and stablecoins.

The UK operates an overseas recognition regime that accepts another country’s regulatory framework as equivalent to its own in specific sectors and allows companies to access its own market in return. The US gives similar “comparability” determinations to other countries.

Why Harris is stepping down now and who takes her place 

During her time at the NYDFS, Harris ensured the agency, which regulates major financial institutions like Goldman Sachs, as well as prominent crypto firms like Coinbase, did not slack on crypto regulation in the United States. 

It implemented stringent regulatory frameworks, including the BitLicense, and got involved with cross-border initiatives like the Transatlantic Regulatory Exchange with the Bank of England.

Harris is also a critic of the Trump administration’s decision to unwind many financial regulation policies that previous Democratic presidents put in place, including cutting funding for the Consumer Financial Protection Bureau (CFPB).

“You really shouldn’t have ideology in financial regulation,” Harris said. “You can protect consumers and support business at the same time; this can be mutually reinforcing.”

As for why she has chosen now to bow out of the NYDFS, Harris has clarified that it has nothing to do with Trump becoming president again. In fact, she claims it was always in her plans to quit after four years and that it has nothing to do with the current state of things in the country. 

Her successor has been named Kaitlin Asrow, who will have much to do as crypto continues to integrate into the financial system.

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