The New York Department of Financial Services (NYDFS) announced a partnership with the Bank of England (BOE) to launch an international regulatory initiative to harmonize crypto regulations, according to a January 13 release.
The program, known as the Transatlantic Regulatory Exchange (TRE), is designed to promote collaboration, share expertise and align regulatory approaches for digital assets and emerging payment systems.
The TRE involves a staff exchange program which will begin in February. This program allows both organizations to leverage the regulatory expertise of their senior executives.
The program specifically targets professionals experienced in digital payments, distributed ledger technology and digital assets, fostering cross-border knowledge sharing to improve regulatory capabilities.
Participants will participate in this exchange for at least six months, with the possibility of extending up to one year, subject to mutual agreement.
At the end of their term, the appointees will return to their respective institutions to implement their new knowledge and improve financial technology regulatory strategies.
NYDFS Superintendent Adrienne A. Harris highlighted the importance of the partnership, emphasizing its role in improving regulatory frameworks, promoting innovation and protecting consumers.
She stressed that strengthening ties between New York and London – the two financial centers – is crucial for effective collaboration in a globally interconnected financial system.
Sarah Breeden, deputy governor for financial stability at the Bank of England, expressed enthusiasm for the initiative. She highlighted the value of shared learning to strengthen financial stability while supporting innovation in digital finance and payments.
This collaboration reflects the proactive efforts of both regulators to address the complexities of digital asset regulation. By pooling their expertise, the NYDFS and BOE aim to create a robust framework that ensures security, supports innovation, and clarifies the global financial ecosystem.
