NY Regulator Harris Resigns, Pushes US-UK Crypto Passporting

In her concluding remarks as head of New York’s top financial regulator, Adrienne Harris made a compelling case for deeper international alignment on cryptocurrency rules. She specifically endorsed a potential passporting arrangement between the United States and United Kingdom that would allow licensed crypto firms in one country to operate in the other without undergoing the full approval process again. Harris argued that such a framework would strengthen investor safeguards, reduce regulatory costs for companies, and promote smoother global market access for digital assets.

Harris emphasized that digital assets inherently operate without borders, requiring regulators to adapt by building cooperative systems that mirror this global nature. Her comments follow joint initiatives by Washington and London to coordinate on what they term “markets of the future,” though the two governments have demonstrated different approaches to national crypto reserves. The U.K. Treasury notably rejected proposals this year to mirror U.S. efforts to stockpile Bitcoin, stating such moves did not align with the country’s financial profile.

During Harris’s four-year leadership, the New York Department of Financial Services (NYDFS) reinforced its reputation as a strict but influential regulator overseeing both traditional finance and emerging digital asset markets. The agency maintains oversight of some of the world’s largest financial institutions, including Goldman Sachs and Barclays, alongside major crypto players such as Coinbase and Circle. This dual jurisdiction provided Harris with unique insight into the intersection of traditional and digital finance.

Harris upheld New York’s signature BitLicense framework throughout her tenure, maintaining the state’s position as having one of the most rigorous crypto regulatory regimes in the United States. She advanced anti-money laundering requirements and consistently argued that integrating traditional financial institutions into the crypto ecosystem was crucial for mitigating risks associated with fraud, cybercrime, and illicit finance. Her approach balanced consumer protection with recognition of innovation’s importance in the financial sector.

Under her leadership, NYDFS opened regulatory dialogues abroad, including establishing the Transatlantic Regulatory Exchange with the Bank of England. These international efforts reflected her belief that effective regulation requires cross-border cooperation, particularly for assets that transcend national boundaries by their very design.

Harris’s departure marks the end of a significant period for U.S. crypto regulation, during which New York maintained its position as a regulatory trendsetter. Kaitlin Asrow, currently an executive deputy at the department, will succeed Harris as superintendent, ensuring continuity in the agency’s approach to financial oversight. The transition comes at a critical juncture as digital assets continue to evolve and integrate with traditional financial systems.

In her final assessment, Harris expressed optimism about the future of digital asset oversight, emphasizing that effective regulation should protect consumers while leaving adequate room for innovation. Her advocacy for US-UK passporting arrangements represents both a culmination of her regulatory philosophy and a challenge to her successors to continue building international frameworks that acknowledge the borderless nature of digital assets while maintaining robust consumer protections.