A New York-based government agency established a partnership deal with the United Kingdom’s central bank to share ideas and insights on regulations that govern cryptocurrencies, which aims to help the two state-run institutions keep pace with the evolving crypto ecosystem.
Analysts said that the collaboration between the New York State Department of Financial Services (NYDFS) and United Kingdom’s Bank of England is considered to be a milestone initiative that could help both government bodies in crafting robust cryptocurrency regulations.
Pioneering Partnership
“Two heads are better than one” is a proverb that proves to be true in developing regulations and policies that oversee the cryptocurrency landscape.
The NYDFS and the Bank of England initiated a resource-sharing partnership that could help reshape the two regulatory bodies’ approach to cryptocurrency.
The New York’s state financial watchdog announced in a press release that a partnership program with the United Kingdom’s central bank would commence next month, adding that the information exchange program on cryptocurrency would run for six months.
Transatlantic Regulatory Exchange
NYDFS Superintendent Adrienne A. Harris announced yesterday that the US regulatory body will start the Transatlantic Regulatory Exchange (TRE) with the Bank of England.
NEW: Superintendent Adrienne A. Harris Launches Inaugural Transatlantic Regulatory Exchange with Bank of England
More details on the new program: https://t.co/b1tDMKFGmA pic.twitter.com/1h86NnRSmo
— NYDFS (@NYDFS) January 13, 2025
Under the international secondment program, New York’s state financial watchdog and regulators would allow the exchange of personnel to have a “greater sharing of resources, knowledge, and regulatory approaches.”
As of today, the market cap of cryptocurrencies stood at $3.26 trillion. Chart: TradingView
“We’re thrilled to partner with the Bank of England in this kind of exchange for the very first time, working together to strengthen regulatory frameworks, protect consumers, and support innovation. Connecting the two global financial capitals of New York and London is critical for regulatory harmonization in (a) world where financial services are not defined by geography,” Harris remarked.
Expertise In Crypto
The American watchdog agency said that the first TRE secondment would start in February wherein NYDFS will exchange senior staff with the United Kingdom’s central bank, saying that individuals who would be part of the resource-sharing program are those with expertise in emerging payments and digital assets.
Bank of England Deputy Governor for Financial Stability Sarah Breeden said that the exchange program is an opportunity that can enhance the cooperation between the central bank and the American watchdog agency.
“By sharing our knowledge and learning from one another, we can better ensure that regulation supports global financial stability and safe innovation in payments and financial markets,” Breeden explained.
Important Regulatory Relationship
TheCityUK CEO Miles Celic described the TRE secondment as a “fantastic initiative”, saying that the program would strengthen the collaborative initiatives between the Bank of England and NYDFS.
“It will help to strengthen the important regulatory relationship between the world’s two leading financial centres. We look forward to the mutual benefits this partnership will naturally bring,” Celic added.
Featured image from Peter Dazeley/Getty Images, chart from TradingView
