New York’s financial watchdog and the Bank of England (BoE) are teaming up in a transatlantic project. The New York Department of Financial Services (DFS) has announced the so-called Transatlantic Regulatory Exchange (TRE) program for digital assets.
NYDFS Superintendent Adrienne A. Harris said the TRE will be a regulatory collaboration between the two global financial hubs, the US (or New York, rather) and the UK.
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As early as February, senior staff exchanges will commence with a focus on emerging payments and digital assets. Through the program, the BoE and DFS hope to share knowledge and harmonise regulatory approaches between the two institutions. Harris said, emphasising the significance of the first-time partnership:
Connecting the two global financial capitals of New York and London is critical for regulatory harmonization in a world where financial services are not defined by geography”
Sarah Breeden, the Deputy Governor for Financial Stability at the Bank of England, said the initiative is an opportunity to enhance cooperation between the institutions by sharing their “knowledge and learning from one another”. Breeden added that the BoE hopes to “better ensure that regulation supports global financial stability and safe innovation in payments and financial markets”.
The initiative will run for six months at first, with the possibility of extension up to one year. But not just anyone can join the program: DFS candidates selected for the exchange must demonstrate expertise in digital payments, distributed ledger technology, virtual currency, or digital assets.
Industry Welcomes Digital Assets Collab
Industry leaders have welcomed the initiative. Kathy Wylde, CEO of Partnership for New York City, described it as a “groundbreaking program” that reinforces DFS’s position as a global regulatory leader for digital assets.
TheCityUK CEO Miles Celic added that the exchange would strengthen the regulatory relationship between the world’s leading financial centres.
Upon completing their secondments, participants will return to their home institutions, bringing enhanced insights and experience to help shape the regulation of emerging financial technologies.
The NYFDS oversees digital asset regulation in the state of New York and, among other things was responsible for approving the Ripple Labs’ RLUSD stablecoin in December 2024.
Disclaimer
This article is provided for information only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
