That question drove a July 20 breakfast gathering titled “Future of New York Cryptocurrency: City’s Path to Becoming the World’s Crypto Capital.” The event featured an editorial conversation involving Adrienne Harris, superintendent of the State Department of Financial Services, and Cory Schouten, editor-in-chief of Crain’s New York Business. The event included a panel discussion moderated by Fred Gabriel, Crain’s Publisher and Managing Editor, and sponsored by eToro US, EY, Genesis and Tusk Strategies.
The panelists were quick to identify the city’s many advantages.
Chen Zur, who serves as EY America’s digital, emerging technologies and blockchain lead, pointed to the region’s deep stores of capital. “Developing crypto technology requires huge sums of money, which New York’s old financial institutions have,” Zur said. “Innovators will do well to partner with them.”
Lule Demmissie, CEO of eToro US, suggested that New York’s edge lies in something less tangible. “The city’s culture and laws resonate with the next generation of Americans, who care deeply about equity,” Demmissie said. “The climate here is attractive to young people who are excited about crypto.”
Matt Homer, director of fintech venture capital firm Nyca, noted that few metropolitan areas are the talent-producing engine that New York is. “Our university system is unique,” Homer said.
Ultimately, however, New York’s crypto future will likely be determined by the regulatory contours being shaped by the DFS. “People find the pace of government regulators frustrating,” said Eric Soufer, head of the crypto and fintech practice at Tusk Strategies. “But we should want regulators to be deliberate and thoughtful. We don’t want them to just follow the wind.”
While other panelists agreed that strict regulation is essential to deter bad actors, Demmissie tempered the consensus with a caveat. “Regulations cannot be too burdensome,” she said, “or they will stifle new entrants with fewer resources. Crypto is an economic equalizer; it brings new faces to ownership circles. High barriers to entry are in the way.”
Still, Demmissie was sure New York would thread that needle. “Lady Liberty doesn’t stand in our harbor for nothing,” she said.
In a separate conversation with Crain’s, Michael Moro, CEO of leading crypto brokerage Genesis Global Trading, shared his perspective on the city’s digital assets. “New York has all the ingredients to become a leader of the sector — research institutions, talent, a vibrant entrepreneurial community,” he said. “But policymakers must recognize that other states are structuring their regulatory and business climates to aggressively curate the crypto sector. New York must act to maintain its status as a prime destination for financial companies.”
