Yesterday, the New York State Department of Financial Services (DFS) concluded a two-day fact-finding hearing on how to regulate Bitcoin and other virtual cryptocurrencies. The purpose of the hearing was to consider whether or not Empire State regulators should have a direct role in overseeing the use of virtual cryptocurrencies, or if existing federal regulations suffice.
In his opening remarks, New York State Superintendent of Financial Services Benjamin M. Lawsky made it clear that the question wasn't so much if New York should regulate cryptocurrencies, but how. "Right now, the regulation of the virtual currency industry is still akin to the Wild West," said Lawsky. "That lack of regulation is simply not tenable for the long-term." Lawsky also expressed a desire not to "clip the wings" of a promising new technology, and acknowledged the potential of cryptocurrencies to revolutionize the money transmission industry.