Top NY regulator updates crypto guidance after announcing departure

With about two weeks to go until Superintendent Adrienne Harris is expected to leave the NYDFS, she announced a two-year update to guidance for New York crypto users.

Adrienne Harris, the superintendent at the New York Department of Financial Services (NYDFS), announced updates to the department’s guidance should a crypto company become insolvent, following the announcement that she will step down from the role.

In a Tuesday notice, Harris said the NYDFS had updated guidance initially announced in January 2023 to better protect users “in the event of an insolvency or similar proceeding.” According to the guidance, the financial regulator focused on clarifying what were “acceptable sub-custodians,” guardrails for crypto custody, and “permissible uses of customer assets.”

“As we see the use of more sub-custodial relationships in the digital asset space, this guidance provides additional clarity on how those relationships should be governed,” said Harris.

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