Recent developments about the New York State Department of Financial Services
(Not affiliated with NYDFS; just a blog.)
Reports Forbes: “OCC trust bank charters for Circle, Ripple, Paxos, BitGo and Fidelity Digital Assets are one of the clearest signals yet that crypto is moving from the regulatory perimeter into the core of the U.S. banking system. For banks, it is arguably the biggest institutional crypto signal of 2025—just as spot bitcoin ETFs were … Read more
In a fireside chat with Penny Lee, President and CEO, Financial Technology Association, Acting Superintendent Kaitlin Asrow discussed: · Crypto: given the changing regulatory environment at the federal level, Superintendent Asrow believes some DFS charters will flip to federal; some entities will want to hold both federal and state charters; and some entities will hold onto DFS … Read more
Superintendent Harris has been busy on her way out the door: – In addition to issuing several pieces of guidance in the past few weeks, she announced Consent Orders with 8 insurance firms and brokers resolving an investigation involving attacks on agent and consumer portals that allegedly exposed consumer information. According to the DFS press … Read more
EXECUTIVE DEPUTY KAITLIN ASROW APPOINTED TO ASSUME ACTING POSITION Announcement is here.
NYDFS issued guidance in the form of a policy statement on obtaining what it terms a “Notice of Satisfaction of Agreements.” · Importantly, a Satisfaction Notice does not serve as the termination of a Consent Order, Written Agreement or MOU: “Notices will not alter, rescind, or seal an Agreement, and they will not cancel any restriction imposed … Read more
NYDFS issued guidance for regulated banking institutions concerning their approach to risks associated with cryptocurrency businesses that may be bank customers or that interact with bank customers · The guidance sensibly responds to the more permissive regulatory environment for cryptocurrency filtering down from the Trump Administration’s major policy shifts · The guidance principally relates to the use … Read more
According to the Consent Order: • Multistate examination found AML deficiencies including (a) failure to provide for an independent review of the AML Program on a frequency commensurate with services provided; (b) deficiencies identified in processes for investigating and reporting suspicious activity, including the failure to timely file SARs; (c) transaction monitoring data integrity issues; (d) … Read more
Does the Supreme Court’s decision in SEC v. Jarkesy entitle a licensed NYDFS entity to a jury trial in an enforcement action? Maybe. If interested see my latest blog post for the NYU Program on Corporate Compliance and Enforcement.
Some takeaways: • On the BitLicense generally: o Harris: New York has an outsized role to play; the BitLicense framework remains a model for the U.S. and the world o Coghill: DFS has been very careful to uphold standard, that is very why most entities do not make it through the application process • On the Application Process: o Harris: Team of 60 … Read more
“Buy Now Pay Later” (BNPL) loans will now be subject to licensing and supervision by the New York State Department of Financial Services under legislation enacted by the legislature and governor. ICYMI, this step follows the CFPB’s statement just three days ago that it is de-prioritizing enforcement around BNPL finance.