By Mark Hunter
1 day agoTue Sep 19 2023 10:48:28
Reading Time: 2 minutes
- New York’s financial regulator has proposed new guidelines for cryptocurrency coin listings and delistings, focusing on transparency and accountability
- The framework outlines expectations for evaluating coin offerings and criteria for delisting coins, assisting firms in creating specific policies
- NYDFS’s crypto unit has tripled in size over the past two years under Superintendent Adrienne Harris’s leadership
The New York State Department of Financial Services (NYDFS) is proposing new guidelines to enhance transparency in cryptocurrency coin listings and delistings within the state. The guidance outlines expectations for cryptocurrency firms when evaluating coin offerings for adoption and the criteria for delisting coins and aims to help these firms create specific coin listing and delisting policies. The news comes four months after New York Attorney General Letitia James announced landmark legislation to tighten regulations on the cryptocurrency industry.
New Framework Will Offer Guidance
Up to now, cryptocurrency companies regulated by NYDFS have been required to submit a firm-specific coin listing policy, with approval required before listing or offering custody for a coin, unless it is on a “greenlist” of approved coins. After approval, firms can self-certify listings but must notify NYDFS before using a coin and keep the regulator informed of all coins offered or used.
The new plan, outlined yesterday in the Wall Street Journal, will see a new framework put in place that focuses on three key areas: governance for the coin listing process, risk assessments of coins, and procedures to monitor coins. The change comes after NYDFS Superintendent Adrienne Harris emphasized the need for robust standards around coin offerings, particularly when new risks emerge or coins are misused.
Under the proposal, virtual currency companies registered in New York must submit their coin listing and delisting policies, with the focus initially being on the delisting process. The new guidelines require firms to outline how they decide to delist a coin, including events triggering removal and execution plans. The proposed framework is open for public comment until October 20.
Harris Pushing Ahead With Reform
These initiatives come as Harris celebrates two years as New York’s top financial regulator, during which NYDFS has aimed to take the lead in setting the nationwide regulatory agenda for cryptocurrencies. Under her leadership, the agency has levied substantial fines against crypto companies and overseen significant developments in the industry.
NYDFS’s crypto unit has expanded significantly over the past two years, tripling in size, demonstrating the regulator’s commitment to overseeing the evolving crypto landscape effectively.
