The New York Department of Financial Services (NYDFS) and the Bank of England want to promote collaboration between the two regulators on cryptocurrency-related issues.
NYDFS Superintendent Adrienne A. Harris has just launched an inaugural transatlantic regulator exchange (TRE) with the Bank of England (BOE). This initiative follows the increasing growth of cryptocurrencies and the need for both institutions to align their efforts.
Per the NYDFS, the collaboration is geared towards fostering working relationships between the two financial regulators on issues related to digital assets, particularly with the evident rapid growth of cryptocurrencies.
Through this exchange program, they plan to share knowledge, develop consistent policies, and address challenges such as fraud, financial stability, and consumer protection.
The first phase of the Transatlantic Regulatory Exchange (TRE) will begin in February, with the NYDFS and the Bank of England exchanging senior staff members. These professionals specialize in areas like emerging payment technologies and digital assets.
This exchange will allow both institutions to share insights, gain firsthand experience with each other’s regulatory approaches, and collaborate on creating effective policies for overseeing the rapidly changing financial technology sector. This initiative aims to enhance international cooperation and strengthen regulatory frameworks for digital assets.
NYDFS Superintendent Adrienne Harris highlighted the importance of international cooperation, stating that the initiative will enable both entities to keep pace with the fast-growing digital economy. Similarly, the Bank of England stated its committed to creating a safe and effective regulatory environment for digital assets.
Read also: UK’s crypto ownership reaches new highs as the Financial Conduct Authority (FCA) plans new rules.
The TRE, which will include joint workshops, information-sharing sessions, and collaborative projects, is expected to benefit not only regulators but also businesses and consumers by ensuring smoother cross-border operations and clearer regulatory guidelines.
Sarah Breeden, Deputy Governor for Financial Stability at the Bank of England, praised the Transatlantic Regulatory Exchange, describing it as an “opportunity to strengthen cooperation between the Bank of England and the New York Department of Financial Services [which] is a great initiative”. She noted that by sharing knowledge, the initiative could promote global financial stability and safe innovation in payments and financial markets.
Kathy Wylde, President and CEO of the Partnership for New York City, called the program “groundbreaking,” highlighting its importance in strengthening the financial roles of New York and London. She noted it reinforces “DFS’s role as a preeminent global regulator, driving responsible innovation and economic opportunity in the city and state while protecting the global financial system.”
