Outgoing NY Regulator Backs US-UK Crypto Passporting
Adrienne Harris announced her resignation as Superintendent of New York’s Department of Financial Services after four years in the role. In her final interview with the Financial Times, Harris voiced strong support for a crypto passporting arrangement between the United States and the United Kingdom. This departure marks a significant moment for digital asset regulation in America’s financial capital.
Governor Hochul appointed Kaitlin Asrow as acting superintendent starting October 18, 2025. Harris’s resignation coincides with growing discussions about international crypto cooperation. Her parting message focuses on the need for streamlined cross-border regulatory frameworks.
Understanding Crypto Passporting Between Nations
A passporting arrangement would allow licensed crypto firms in one country to operate in the other without repeating the full approval process. This concept mirrors similar frameworks already established in traditional financial services. The European Union uses the most advanced passporting system through its Markets in Crypto-Assets regulation.
Harris believes such a framework could reduce redundant compliance burdens for legitimate crypto businesses. Companies licensed in New York could potentially serve UK customers without obtaining separate British authorization. The reverse would apply for UK-licensed firms seeking access to American markets.
Benefits of US-UK Crypto Passporting for Digital Asset Firms
Harris argued this framework could reduce costs and boost interoperability between the two major financial markets. Crypto companies currently face significant expenses when expanding across borders. Each jurisdiction requires separate licensing applications, legal reviews, and compliance infrastructure.
A passporting scheme would eliminate much of this duplicative work. Firms could leverage their existing regulatory approvals to enter new markets faster. This efficiency would particularly benefit smaller crypto startups with limited resources. Lower barriers to entry could foster innovation and competition in the digital asset space.
Harris’s Legacy at New York Department of Financial Services
Harris served four years as superintendent, cementing DFS as a global regulatory leader in cryptocurrency oversight. Under her leadership, New York maintained its position as a crucial gateway for crypto firms entering US markets. The state’s BitLicense framework remains one of the most rigorous licensing regimes globally.
Her tenure saw increased engagement with crypto companies seeking regulatory clarity. Harris balanced consumer protection with creating pathways for legitimate digital asset businesses. This approach earned her recognition as one of the few US regulators actively developing comprehensive crypto frameworks.
Transatlantic Cooperation on Digital Asset Regulation
The UK and US launched the Transatlantic Taskforce for Markets of the Future on September 30, 2025, to explore regulatory coordination. This initiative demonstrates growing momentum for international cooperation on crypto policy. Both nations recognize that fragmented regulation creates challenges for global digital asset markets.
The task force will examine potential frameworks for mutual recognition of regulatory standards. Discussions will likely cover licensing requirements, consumer protection measures, and anti-money laundering protocols. Success could establish a model for broader international crypto cooperation.
Roadblocks Facing Crypto Passporting Implementation
Several obstacles could complicate US-UK crypto passporting arrangements. American regulation operates through multiple federal and state agencies with overlapping jurisdictions. New York’s DFS represents only one state regulator, though an influential one. Federal agencies like the SEC and CFTC maintain separate crypto oversight responsibilities.
Constitutional and legal frameworks differ substantially between the two nations. The UK operates under a unified regulatory system through the Financial Conduct Authority. Coordinating these different structures requires significant diplomatic and legal work. Political changes in either country could also impact implementation timelines.
Conclusion
Harris’s endorsement of crypto passporting signals shifting attitudes among senior US regulators. Her support adds credibility to proposals for international regulatory cooperation. Other jurisdictions may watch the US-UK discussions as a potential template.
The success of such arrangements could reshape global crypto markets. Companies might concentrate operations in passporting jurisdictions to maximize market access. This could create competitive pressure on other nations to join similar frameworks. The next few years will prove critical for establishing these international standards.
