NYDFS Defends BitLicense as Gold Standard in Crypto Regulation Amid FTX Fallout

At Consensus 2025 in Toronto, Adrienne Harris, Superintendent of the New York Department of Financial Services (NYDFS), staunchly defended the state’s BitLicense framework as the global benchmark for cryptocurrency regulation. With the U.S. still lacking comprehensive federal crypto oversight, Harris emphasized how New York’s rigorous vetting process has successfully filtered out high-risk entities—including now-collapsed firms like FTX—while setting precedents for regulators worldwide. The BitLicense’s enduring influence underscores its role as a critical safeguard in an evolving digital asset landscape.

New York’s BitLicense Remains Global Benchmark Amid Federal Regulatory Void

Adrienne Harris, Superintendent of the New York Department of Financial Services, defended the state’s stringent crypto licensing regime at Consensus 2025 in Toronto. "The BitLicense continues to set the gold standard," Harris asserted, noting its influence on both domestic and international regulators.

New York’s rigorous vetting process has proven its worth, Harris argued, citing the exclusion of now-collapsed firms like FTX, Voyager, and Celsius. "Our standards prevented these companies from operating in New York - that’s validation of our approach," she said. The DFS maintains a dedicated 60-person team overseeing crypto regulation.

FTX Announces $5 Billion Second Distribution to Creditors

FTX Trading Ltd. and the FTX Recovery Trust revealed plans to distribute over $5 billion to eligible creditors on May 30, 2025. The funds will be allocated to holders of allowed claims under the exchange’s Chapter 11 reorganization plan.

Disbursements will cover both Convenience and Non-Convenience Classes, contingent on completion of pre-distribution requirements. The MOVE marks a critical step in FTX’s post-collapse recovery efforts.