IS CRYPTOCURRENCY AT A REGULATORY FORK?

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Is Cryptocurrency at a Regulatory Fork? On the one hand, regulated institutions like Gemini are seeking to mirror practices in traditional financial services, like greater transparency for customers.  See https://www.gemini.com/blog/announcing-the-gemini-trust-center-building-trust-through-transparency. On the other, are sentiments expressed by people like Sam Bankman-Fried in his interview with Vox — a must read.   Interview here:  https://www.vox.com/future-perfect/23462333/sam-bankman-fried-ftx-cryptocurrency-effective-altruism-crypto-bahamas-philanthropy

NYDFS TO ISSUE ADDITIONAL GUIDANCE ON CRYPTOCURRENCY

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According to Superintendent Harris, NYDFS will issue additional guidance for cryptocurrency firms.  Superintendent Harris via Law360: “We’ll have more to say on capitalization,….You’ll hear more from us on consumer protection, disclosures, advertising … [and] complaints, making sure these companies have an easy way for consumers to complain. . . . Harris indicated that the forthcoming … Read more

OCC ACTING COMPTROLLER “CAREFUL AND CAUTIOUS” ON CRYPTO

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CHIEF FEDERAL BANKING REGULATOR MICHAEL HSU, THE ACTING COMPTROLLER OF THE CURRENCY, IS “CAREFUL AND CAUTIOUS” ON CRYPTO — Michael Hsu: “Last year, the OCC adopted a “careful and cautious” approach to crypto activities by national banks. This helped mitigate the risk of contagion from crypto to the banking system. Years of reform and rebuilding … Read more

THE FTX COLLAPSE: NYDFS PROVIDES ITS PERSPECTIVE

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Superintendent Adrienne A. Harris, Peter Marton & Kaitlin Asrow spoke today at The Brookings Institution about FTX, indicating NY residents had limited exposure to the collapse because (a) FTX had not yet been licensed to operate in NY (it had a pending application) and (b) FTX’s own coin, FTT, had not yet been greenlisted by DFS. Video of the interviews is here:  https://www.brookings.edu/events/digital-asset-regulation-the-state-perspective/?utm_campaign=events%3a%20economic%20studies&utm_medium=email&utm_content=231476264&utm_source=hs_automation

ARE TWITTER USERS REALLY THE BEST REGULATOR FOR CRYPTO?

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Are Twitter Users Really the Best Regulator for Crypto? Regarding Crypto.com‘s erroneous transfer of $400 million, the Wall Street Journal Reports:  “The transfer of a large chunk of ether, a popular cryptocurrency, took place on Oct. 21, but came to light after Twitter users flagged the transfer as unusual, based on publicly available blockchain transaction … Read more

NYDFS PROPOSES AMENDMENTS TO CYBERSECURITY REGULATION

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NYDFS Proposed amendments to its Cybersecurity Regulation, “Part 500.”  According to DFS, the amendments include: – Creation of three tiers of companies, further tailoring the regulation to a diverse set of businesses with different defensive needs. – Enhanced governance requirements, thereby increasing accountability for cybersecurity at the Board and C-Suite levels. – Additional controls to … Read more

NYDFS SETTLES OPIOID CHARGES WITH TEVA AS PART OF GLOBAL SETTLEMENT WITH ATTORNEYS GENERAL

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As part of a global settlement with numerous attorneys general, including the New York AG, NYDFS also resolved its administrative charges of insurance fraud against pharmaceutical manufacturer Teva over misrepresentations in charges for opioid products. Notably, Teva had unsuccessfully challenged in New York State court the  authority of NYDFS to investigate this conduct as insurance … Read more

NYDFS ISSUES PROPOSED REGULATION ALLOWING COLLECTION OF DATA CONCERNING BANKING SERVICES OFFERED TO MWBE BUSINESS

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NYDFS has announced a proposed regulation allowing banks to collect data concerning banking services offered to Minority and Women-Owned Businesses (MWBE) under the Community Reinvestment Act.  From Superintendent Harris:  “Banks must meet the needs of all consumers, including minority and women business owners, who historically have been denied fair access to credit,” said Superintendent of … Read more

REVISED NYDFS CYBERSECURITY REGULATION COULD BE IMMINENT

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The Wall Street Journal has reported that amendments to Part 500, the NYDFS Cybersecurity Regulation, could by issued by the agency in the near future.  From the WSJ article:  “”Last week’s consent order, one of three multimillion-dollar cybersecurity settlements NYDFS has reached in recent months, comes as the agency prepares to propose regulatory updates that … Read more

NYDFS TAKES $4.5 MILLION CYBERSECURITY ENFORCEMENT ACTION AGAINST EYEMED VISION CARE

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NYDFS has taken another cybersecurity enforcement action, this time against vision insurance company EyeMed.   NYDFS leveled a  $4.5 million penalty against the company.   From its findings: “The Department’s investigation revealed that as a result of a July 1, 2020 phishing attack, a bad actor gained access to a shared EyeMed email mailbox which contained over … Read more