- The NYDFS has proposed a new regulation for the listing and delisting of coins.
- The legislation is open for public comment until the 20th of October.
- NYDFS’ Adrienne Harris has imposed fines totaling millions on cryptocurrency companies.
As the need for transparency in the cryptocurrency industry heightens, the New York State Department of Financial Services (NYDFS) is looking to lead the regulatory charge by implementing stringent rules and guidance for firms operating in different regions within the state.
New Listing Guidelines Unveiled
According to a report by the Wall Street Journal on Monday, September 18th, the NYDFS is proposing a new comprehensive set of guidelines for crypto firms. The framework addresses the evaluation process that crypto offerings undergo before being listed or delisted, thereby ushering in greater transparency.
The New York State Department of Financial Services Superintendent, Adrienne Harris, stated that the proposed legislation stemmed from discovering perceived deficiencies in the existing system and aims to make standards around coin offerings more robust.
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“When we know that a coin that someone once thought was OK, when we see that new risks have emerged or the coin is being misused, we want our entities to have a way to delist the coin in a way that’s still protective of consumers and protects safety and soundness as well.”
A critical facet of the framework lies in the assessment of risk. Crypto firms operating in the state must conduct evaluations and submit new coin-listing and delisting policies before offering them. The measure aims to protect consumers while allowing firms to make listings with clear regulatory approval.
This proposed legislation coincides with Harris’ second anniversary as New York’s lead regulator. During her tenure, the NYDFS has issued $132 million in significant fines against companies such as Coinbase and Robinhood’s crypto unit.
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