USA – NEW YORK Trends and Developments Contributed by: Temidayo Aganga-Williams, Selendy Gay PLLC
ing it to cease minting Binance USD, citing deficien - cies in the oversight of its Binance relationship and its broader compliance programme and culminating in a USD48.5 million settlement in 2025. Across these actions, the agency has consistently used the BitLi - cense framework not merely as a licensing threshold, but as a framework for ongoing prudential supervi - sion, all the while imposing remediation obligations, governance reforms and, in some cases, structural business constraints. NYDFS Superintendent Adri - enne Harris has described the BitLicense framework as “a model for the US and the world,” and her office’s engagement with federal legislators on crypto regula - tion suggests that description reflects an institutional ambition rather than mere rhetoric. For global firms, the lesson is clear: obtaining a BitLicense does not end NYDFS scrutiny; it initiates an ongoing supervi - sory relationship. Proposed legislation currently before the New York legislature, the CRYPTO Act, would go further by making unlicensed virtual currency business activ - ity involving USD25,000 or more in 30 days a felony under New York state law. Further, federal registration alone does not satisfy the New York requirement.
Similarly, New York Attorney General Leticia James has also displayed an appetite, armed with a broad blue sky law, to move quickly and aggressively into cryptocurrency enforcement, building a sustained enforcement record. Most recently, her office sued Coinbase and Gemini for illegally running unlicensed gambling operations through their prediction market
platforms, seeking: • forfeiture of profits; • treble fines; and • restitution to harmed consumers. Conclusion
These four developments are not isolated enforce - ment events. They reflect a coherent, if uncoordinat - ed, institutional posture in which New York’s federal and state enforcement ecosystem is actively defining the outer edges of financial crime law and inviting the rest of the country to catch up.
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