NYDFS SUPERINTENDENT SAYS MORE CRYPTO ENFORCEMENT COMING

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 we’re using the full suite of tools at our disposal,” also including rulemaking, and guidance.

•        Superintendent Harris noted “there’s definitely a place for enforcement” and “you will see more from DFS and from other regulators….”

•        With respect to areas of focus, the Superintendent noted, “the big issues we see with crypto, in addition to in the market making space, . . . there is certainly that potential for fraud and . . . where we see the biggest areas of vulnerability are often around illicit finance, so the AML BSA frameworks and cyber security, . . . but the market manipulation, fraud marketing schemes, those kinds of things are also top of mind and why we’ve issued guidance around those areas and I think you will see enforcement from us where necessary.”