News

OCC FINDS HEIGHTENED RISK TO FINANCIAL INSTITUTIONS BASED ON SHORTAGE OF QUALIFIED COMPLIANCE PROFESSIONALS

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Strong compliance personnel remain one of the best investments for a financial institution, and an ongoing challenge, per the OCC: “Compliance risk remains heightened…. [T]he OCC has observed an increase in the competition for compliance subject matter experts, at both the bank management and staff levels.” The OCC Report may be found here:   https://www.occ.treas.gov/publications-and-resources/publications/semiannual-risk-perspective/files/semiannual-risk-perspective-spring-2022.html  

NYDFS ISSUES FIRST-IN-THE-NATION STABLECOIN GUIDANCE

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Its finally here:  first-in-the-nation stablecoin guidance for regulated cryptocurrency entities.  Some highlights: Backing and Redeemability: The stablecoin must be fully backed by a Reserve of assets, meaning that the market value of the Reserve is at least equal to the nominal value of all outstanding units of the stablecoin as of the end of each … Read more

NYDFS SUPERINTENDENT HARRIS SAYS “REGULATORS NEED TO DEVELOP A ’21ST CENTURY FRAMEWORK’ FOR CRYPTO”: AT LINKS 2022 CONFERENCE

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At the Links 2022 Conference, NYDFS Superintendent Adrienne A. Harris stated that “the regulatory agency will triple the size of its virtual currency unit by the end of the year.” Its ambitious — but much needed. Superintendent Harris “said her agency is working to hire additional staff and update its guidance to better deal with … Read more

NYDFS ISSUES GUIDANCE ON USE OF BLOCKCHAIN ANALYTICS BY REGULATED CRYPTO FIRMS

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NYDFS issued guidance concerning the use of blockchain analytics by regulated cryptocurrency firms.  NYDFS stated:  “The purpose of this guidance … is to emphasize to all virtual currency business entities that are either licensed under 23 NYCRR Part 200 or chartered as a limited purpose trust company … the importance of blockchain analytics to effective policies, … Read more

“NYDFS ROUNDUP: CRYPTO, CYBERSECURITY, AND INSURANCE COMPANIES”: MATTHEW LEVINE PUBLISHES ARTICLE IN NEW YORK LAW JOURNAL

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Matthew Levine published his most recent article on NYDFS titled “NYDFS Roundup:  Crypto, Cybersecurity, and Insurance Companies.”  The article begins: “Change has been a constant at the New York State Department of Financial Services.   Since its first Superintendent departed the agency in June 2015, there have been six confirmed and acting Superintendents for DFS.  With … Read more

NYDFS GAINS STATUTORY AUTHORITY TO ASSESS CRYPTO BUSINESSES — PARITY WITH OTHER FINANCIAL INSTITUTIONS

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The New York State legislature and Governor Hochul enacted a new law that allows NYDFS to assess licensed crypto businesses in the same manner it assesses other regulated entities.   Each regulated entity must pay a yearly assessment to NYDFS that, in aggregate, funds NYDFS operations.  NYDFS does not rely on taxpayer funds and does not … Read more

MATTHEW LEVINE SPEAKS ON ENFORCEMENT RISK FOR BANKS, FINTECHS AND VENDORS AT ABA BUSINESS LAW SECTION MEETING

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Matthew Levine spoke on a panel at the ABA’s Business Law Section’s Hybrid Spring Meeting on enforcement risks for banks, fintechs and their vendors.   As the regulatory perimeter continues to develop, the enforcement risk for regulated financial institutions, fintechs, and third-party service providers, including notably the technology companies that work with them, remains a key … Read more

“CRYPTO’S MOST POWERFUL REGULATOR IS HERE”: NYMAG.COM ON NYDFS SUPERINTENDENT ADRIENNE A. HARRIS

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In an in-depth look at NYDFS Superintendent Adrienne A. Harris, titled, “Crypto’s Most Powerful Regulator is Here,” New York Magazine (nymag.com) elicits important information concerning her vision and approach to cryptocurrency regulation is included, including her view that NYDFS may attempt to regulate DEFI “lending and asset management.” The article may be found here:  https://nymag.com/intelligencer/2022/03/adrienne-harris-is-cryptos-most-powerful-regulator.html  

FUTURE OF NYDFS ENFORCEMENT — MORE HOT TAKES FROM LAW360 INTERVIEW WITH SUPERINTEDENT HARRIS — PART TWO

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Hot takes from Part Two of Law360’s interview with NYDFS Superintendent Adrienne A. Harris: NYDFS intends to streamline the Bitlicense application process but “without sacrificing regulatory rigor.” Diversity in the Board and management of regulated financial institutions is a “safety and soundness” issue. Superintendent Harris’ favorite musical artist is Jay-Z. Part Two of the Law360 … Read more

FUTURE OF NYDFS ENFORCEMENT — HOT TAKES FROM LAW360 INTERVIEW WITH SUPERINTENDENT HARRIS -PART ONE

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Hot takes from Part One of Law360’s interview with NYDFS Superintendent Adrienne A. Harris: NYDFS will focus on “kitchen table” Issues, so consumer-facing businesses will be in focus for enforcement efforts. BSA/AML/OFAC enforcement “continues to be incredibly important.” Three — “Predatory behavior” and “cybersecurity governance and protocols” also will be enforcement emphasis. Part One of … Read more