New York Department of Financial Services superintendent Maria Vullo defended her officeâs approach to regulating cryptocurrencies on Thursday.
Speaking at the Council on Foreign Relationâs âLegal Tender? The Regulation of Cryptocurrenciesâ panel in New York on Wednesday, Vullo said that her view is âregulation in this space, just like any space where you have money transmission, [is necessary],â making a point she often revisited during the discussion.
While some state and federal regulars are taking time to create rules for the industry, âit certainly hasnât taken New York long to establish a frameworkâ for regulating cryptocurrencies, Vullo said in her opening statement, referring to the stateâs controversial BitLicense.
The role of regulation in the cryptocurrency space was a contentious topic, with Blockchain president and chief legal officer Marco Santori claiming regulators should ease up on the over-regulation.
That said, he did acknowledge that âa lot of token sales run afoul of the spirit of the law, if not the letter of the law. But we have to be careful not to lump them all together.â
In particular, he argued that New Yorkâs laws âhave been an abject failure.â
However, Vullo derided developers who claim that their work should allow them to launch token sales free of disclosure or other requirements, saying:
âI think regulators absolutely need to be in the space, I know theyâre saying âweâre innovative, weâre startups, we need to be left alone and put in a sandbox.â Toddlers play in the sandbox. Adults play by the rules.â
In another rapid exchange, CNN investigative journalist and panelist Jose Pagliery expressed concern about the idea that âcode is law,â saying that while this may be true, coders can modify certain protocols:
âIf youâre the executive at a bank, you have people to answer to ⦠if youâre one of a dozen coders around the world whose name no one knows and youâre the one at the controls changing how this cryptocurrency works ⦠we have to figure out how these people are held accountable.â
Santori disagreed with this premise, saying âthat is not only a bad question, you should feel bad for asking it.â
In turn, Vullo said: âI didnât know this was about feelings.â
Seema Mody, Jose Pagliery, Marco Santori and Maria Vullo image by Nikhilesh De for CoinDesk