There’s a major shakeup in the crypto regulatory landscape with the imminent departure of Peter Marton from his influential role as the deputy superintendent of virtual currency at the New York State Department of Financial Services (NYSDFS). His anticipated exit, scheduled for the end of this month, signifies a significant shift in a regulatory body known for its rigorous approach to the booming $1 trillion cryptocurrency market, particularly on the highly-contested ground of BitLicenses – a virtually ordained permit regarded as a regulatory milestone for any crypto company operating in New York State.
Marton’s expertise in his regulatory services for nearly two years, combined with his prior exposure as director of digital assets at IBM’s financial subsidiary, has played integral roles in critical policy decision-making related to digital assets and blockchain technology. Yet, his pivot to private-sector opportunities leaves a vacuum in an entity perceived as one of the most powerful sets of regulatory hands in the American crypto space.
Under Marton’s watch, the NYDFS has maintained a tight grip on these BitLicenses, awarding only six in the past year. There’ve been cases where violation of anti-money laundering laws has prompted the agency to take punitive measures against crypto companies, as witnessed in the cases of Coinbase and Robinhood, with fines of $100 million and $30 million retrospectively. This rigor, combined with the capability to launch legal precedence, enhances the significance of Marton’s move to the private sector, raising the inevitable question – who fills this role?
The search for a replacement is already underway, with the announcement being made on the NYSDFS website. The role, which comes with a hefty annual salary, calls for the management of the BitLicense application process, conducting examinations, and providing ongoing supervision of BitLicenses.
Under the NYSDFS’ stewardship, the regulations surrounding crypto companies have become increasingly tight, particularly subsequent to the remarkable collapse of the crypto exchange FTX. Measures included asking companies holding a BitLicence to pay assessment fees akin to insurance and banking firms, and a mandate for companies to separate their crypto assets from customers’ assets. These additional norms put digital asset entities in the same bracket as insurance and banking companies, seemingly pointing towards an evolving regulatory future for crypto companies. Thus, the unfolding of this story under a new steward presents endless possibilities for the crypto market and its regulators.
Source: Cryptonews
