The New York State Department of Financial Services has just released proposed guideline updates that introduce stricter regulations for coin listings.
Proposed updates to guidelines from the New York State Department of Financial Services are poised to impose more stringent regulations on cryptocurrency listings.
As per the consultation put forth by NYDFS Superintendent Adrienne A. Harris, licensees may be required to conduct comprehensive risk assessments for new cryptocurrencies, as well as outline their procedures for delisting a cryptocurrency.
The newly proposed framework compels companies to formulate their coin-listing policies across three key areas: the governance of the coin-listing process, risk evaluations of cryptocurrencies, and monitoring procedures for listed coins.
Additionally, the framework stipulates that firms must elucidate their criteria for delisting a cryptocurrency, encompassing the types of events that could trigger such action. It also calls for clarity on execution strategies, including how customers will be notified and the impact analysis conducted during delisting processes.
The proposed framework coincides with Adrienne A. Harris celebrating her two-year tenure as New York’s top financial regulator. NYDFS has been leveraging the state’s strong track record in regulating insurance and banking to foster transparency within the cryptocurrency space.
Under Harris’s leadership, NYDFS has imposed fines totaling $132 million on cryptocurrency firms, including Coinbase and Robinhood.
In a statement, Harris remarked, “Since joining DFS, I have made it a priority to ensure the Department’s regulatory and operational capabilities keep pace with industry developments to protect consumers and markets.”
In less than two years, we’ve expanded our team to over sixty seasoned professionals, fortified consumer and industry protections, and engaged with policymakers globally, including the U.S. Congress, to advocate for the establishment of a federal prudential regulator overseeing the industry.
Last April, the regulator outlined the criteria by which crypto companies would be evaluated for compliance with anti-money laundering and cybersecurity standards.
As part of this latest initiative, the regulator has also updated its list of approved cryptocurrencies that firms can list or custody without additional regulatory requirements. The approved coins, known as “greenlisted” assets, include Bitcoin (BTC), Ethereum (ETH), and stablecoins issued by Gemini and PayPal.
The proposed guidelines are open for public comment until October 20th.
