NYDFS’s Crypto Chief Resigns, What’s Next For New York’s Digital Currency Rules?

According to a recent report, Peter Marton, a pivotal player in crypto regulations and Deputy Superintendent of Virtual Currency at the New York State Department of Financial Services (NYSDFS), has resigned from Marton’s esteemed role.

A Legacy Of Crypto Regulation: Marton’s Tenure At NYSDFS

Come September 29, Peter Marton will vacate Marton’s position as the Deputy Superintendent of Virtual Currency at NYSDFS. FOX Business shared this notable shift exclusively, marking an end to Marton’s contribution to the regulatory environment.

As elucidated by an internal memo not yet made public, this decision stems from Marton’s intent to delve into private sector avenues.

Adrienne Harris, the Superintendent of the department, has vocalized Harris’s commendations for Marton, lauding the Ex-Deputy Superintendent of NYSDFS’s efforts in curating what she believes is “the largest and most talented team of virtual currency regulators in the nation.”

With the vacancy that ensues, NYSDFS has not tarried in its efforts to find a worthy successor. The department’s website now showcases the open position, ushering candidates to step into Marton’s shoes, with the application process set to culminate by October 9.

SCOOP: @NYDFS is looking to fill the role of Deputy Superintendent of Virtual Currency as incumbent Peter Marton will depart from the role at the end of the month. pic.twitter.com/BP3AUAOfUt

— Eleanor Terrett (@EleanorTerrett) September 14, 2023

The NYDFS And The BitLicense Controversy

The NYDFS is well-known for its strict cryptocurrency regulations. The department is famous for requiring every crypto business in the state to obtain a “BitLicense” before operating. While this requirement emphasizes NYDFS’s influence in crypto, it has also attracted criticism.

The crypto community has often found itself at loggerheads with the BitLicense stipulations, condemning them as excessively rigid. Under the combined helm of Harris and Marton, the NYDFS has greenlit a mere six BitLicenses in the preceding year.

This approval process is further underscored by the department’s tough actions against prominent entities like Coinbase and Robinhood, stemming from infringements of anti-money laundering norms.

Meanwhile, the NYDFS implemented a new rule to bill licensed crypto firms over supervisory costs in April. As reported by Bitcoinist, this bill mainly targeted New York crypto firms registered under the BitLicense.

The New York State Department of Financial Services (NYDFS) Superintendent Adrienne Harris noted:

This regulation provides the Department with additional tools and resources to regulate the virtual currency industry now and in the future, as innovators create new products and use cases for digital assets.

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