Recent developments about the New York State Department of Financial Services
(Not affiliated with NYDFS; just a blog.)
From the Wall Street Journal: – “New York’s financial regulator has appointed a former official from Dubai’s financial regulator to help oversee its virtual currency unit that regulates cryptocurrency businesses in the state. Ken Coghill, who most recently was the director and head of innovation and technology risk supervision at Dubai Financial Services Authority, … Read more
In conjunction with its proposed guidance, DFS has significantly trimmed “Greenlisted” coins. It has cut the list to Bitcoin, Ethereum, and several stablecoins. Until recently it had Greenlisted approximately two dozen coins. These changes are part of the Department’s initiative seeking to strengthen DFS oversight of virtual currencies, which include new guidance coin listing and … Read more
According to the strategy released by New York governor Kathy Hochul: “Financial Sector[:] In 2017, the New York State Department of Financial Services (DFS) became the first banking or insurance regulator in the nation to establish a cybersecurity division to protect consumers and industries from cyber threats. DFS also created first-in-the-nation requirements for DFS-regulated banks, … Read more
Harriet Pearson has been appointed Executive Deputy Superintendent for Cybersecurity by Superintendent Adrienne A. Harris, following the departure of Justin Herring. Announcement here.
NYDFS has published in the State Register its revised proposed second amendment to Part 500, the Cybersecurity Regulation. Some changes have been made based on comments received on the prior draft. It is a dense document, as is the Assessment of Comments. More to come.
The New York State Senate passed legislation that will enhance NYDFS enforcement powers against unlicensed activity in the State. Takeaways: • While there has been some argument over the powers of NYDFS to go after unlicensed financial services activity in the state, new legislation passed by the Senate and pending in the Assembly clarifies that it … Read more
NYDFS Superintendent Adrienne A. Harris testified today before the New York State Senate standing committee on Banks concerning DFS supervision and other issues. The testimony may be found here.
According to Bloomberg: “New York’s top financial industry regulator is trying to expand bank examiner staffing, but relatively low pay and federal agencies’ competition for skilled labor are posing stiff challenges. The New York Department of Financial Services has faced ‘internal staffing restraints’ that hinder adequate staffing of examination teams, the DFS said in an … Read more
Superintendent Harris announced today final adoption of the assessment regulation. Quick takeaways: • The adopted regulation effectuates legislation in the NYS FY23 Budget giving DFS authority to collect supervisory costs from licensed virtual currency businesses, similar to other licensees regulated by DFS. • Says DFS: “As stewards of others’ assets, virtual currency entities play an important role in the … Read more
While the jury appears still to be out on what will result in imposition of a new DOJ monitorship under the Monaco Memos, if you breach a DPA — twice — you will get an extension of the Monitorship. DOJ has now extended the Ericsson monitorship arising out of an FCPA prosecution for one year. … Read more