Recent developments about the New York State Department of Financial Services
(Not affiliated with NYDFS; just a blog.)
Two new cybersecurity enforcement actions from NYDFS, against GEICO and Travelers Indemnity Co. Enforcement takeaways are (according to DFS allegations): • GEICO experienced three cybersecurity events in a short period of time primarily involving customer interfaces for obtaining quotes and submitting claims and the web portal for GEICO agents, allowing threat actors to obtain driver license … Read more
• According to NYDFS, this is the second annual report, reviewing lending activity based on the New York Home Mortgage Disclosure Act (“HMDA”) data from 2023. • As in last year’s report, NYDFS analyzed mortgage lending in 23 different geographies, including New York State as a whole, all metropolitan statistical areas (“MSAs”) within the state, and a … Read more
Speaking to Bloomberg at DC Fintech Week, Superintendent Adrienne Harris stated about crypto enforcement: • Superintendent Adrienne Harris said “absolutely” when asked if there are “big cases coming down the pike for crypto firms, stable coin firms or even market makers in the space.” • Superintendent Harris elaborated, saying “I think for us we really make sure … Read more
Speaking this week at DACOM 2024, Superintendent Harris stated: • The Superintendent does not contemplate any amendments to the BitLicense, even though the regulatory regime will be in effect for 10 years coming June. • She said the BitLicense framework will continue to evolve instead through guidance, enforcement and other supervisory activity. She pointed to the agency’s … Read more
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