This was in their criticism of the existing BitLicense and calls for it to be scrapped. The way it was stated at a recent event, the removal of the BitLicense will benefit the industry and New York itself.
The cryptocurrency sector has always had to navigate the complexity of laws at various levels. This has included outright bans in certain countries, laws that make it harder to transact business, and just the complexities of dealing with regulators. The latest aspect of crypto laws to receive attention is New York's BitLicense.
All About The Bitlicense
Introduced back in 2015, the BitLicense is, as the name suggests, a license that is required for digital assets transmitters to operate, specifically in the state of New York. While it was introduced as a way to ensure uniformity and compliance within the crypto sector in the state, it has been criticized multiple times in the past.
Some of these criticisms include the difficulty of earning a BitLicense as well as its allegedly restrictive rules. And at the recent crypto conference in New York, both Mayor Eric Adams and several industry stakeholders agreed that the license should be done away with. The arguments made were that it interferes with the industry more than it helps it.
This is not the first time that crypto industry stakeholders have pushed against laws. After all, one of the core ethos of many blockchain projects is empowering users to take control of their finances and their digital presence without external interference. This is why, for example, many crypto wallets are designed to allow customers to buy tokens without requiring their personal information. A look at some of the most popular crypto wallets will show that being able to buy bitcoin without KYC is a major selling point. In the same vein, many crypto businesses want to operate in New York without excessive government interference.
How The Bitlicense Might Be Scrapped
Prior to a private meeting with industry stakeholders, Mayor Eric Adams expressed enthusiasm about the crypto industry and threw his support behind it.
Attendees at the meeting said that an overhaul of the BitLicense program and less restrictive crypto regulations could turn the Big Apple into a sanctuary City for the crypto industry. Adams, on his part, has said that lobbying will be needed to change the laws and open up New York to more crypto entities.
“We need your help to lobby Albany to tell them there are serious and important things that could be done on our state level so we don’t prevent the cryptocurrency and blockchain industry to grow in this city,” he said.
This support is not surprising given that he converted his first paycheck as mayor into cryptocurrency, and while he has battled corruption charges of his own, his support for the industry has not wavered. In fact, he has said that he will put together New York's first digital asset advisory council and will appoint members of this Council very soon.
It is fitting that he held a crypto conference just months after the current US President, Donald Trump, did the same. From that conference at the White House to the recent dinner with private investors in his crypto, even as more people get involved with it, Trump has shown great support for the crypto sector, and it seems this is trickling down to other public office holders.
It is worth noting that there is a race of sorts currently for various cities and countries to become major cryptocurrency hubs. States like Arizona have begun considering cryptocurrency for state pensions, and Florida is even looking to eliminate crypto tax altogether. As these laws are being put in place, crypto companies will flock to other states to get their needs met, and New York will want to stay competitive.
This is all coming at a good time, given that Circle, a stablecoin giant, is looking at a valuation of $6.71 billion in an upcoming IPO. This would make it one of the biggest IPOs in the crypto sector, and shows just how profitable the space has become. Needless to say, if there was any time to create a welcoming space for the crypto industry, it would be now.
Conclusion
The bigger the crypto industry grows, the more emphasis there will be on various laws, both at the state and federal levels. But as this development shows, crypto industry insiders are not going down without a fight and instead, are reaching out to allies within the government to push the law in their favor. Only time will tell if the BitLicense will be removed, and if so, what the short and long-term effects will be.
