NYDFS chief urges crypto firms to maintain open communication

Adrienne Harris, head of the New York State Department of Financial Services (NYDFS), stressed the importance of transparency between cryptocurrency firms and regulators during a discussion with Ripple's chief legal officer, Stuart Alderoty, at the Ripple Swell event in Miami. 

Harris advised the industry to “never surprise your regulator,” emphasising the need for direct and proactive communication.

Harris noted that regulators prefer to hear about issues directly from companies, rather than through the media. 

“If we read about it before we hear about it, we’re already on the wrong foot,” she said. 

She encouraged crypto firms to engage with regulators and share their long-term business plans, stating, “Come in, talk to us about your five-year business plan.”

The discussion also addressed differences between state and federal approaches to crypto regulation. 

While New York has a more developed stance on cryptocurrency, Harris acknowledged that the U.S. still lags behind other regions, such as Europe, in comprehensive regulations. 

She suggested that open dialogue could help bridge these gaps and create a clearer path for compliance.

The broader U.S. political context has seen both presidential candidates express supportive views on cryptocurrency, leading to a divided industry. 

Some back Donald Trump, citing a perceived lack of regulatory progress under the current administration, while others support Kamala Harris for her economic approach. 

Ripple (CRYPTO:XRP) co-founder Chris Larsen contributed $1 million in XRP to Kamala Harris’ campaign, signaling his support.

Meanwhile, Trump’s team has promoted the World Liberty Financial token project, which has seen over 100,000 sign-ups.