Partners Brian Mahanna and Tiffany Smith and Counsel Isabel Dai penned an article for Law360 outlining New York’s landmark legislative proposal to tighten regulations on the digital asset industry. Partner Zachary Goldman, Senior Counsel Eric Lesser and Senior Associate Zachary Kessler contributed to the article.
Excerpt: On May 5, New York Attorney General Letitia James announced a landmark legislative proposal — titled the Crypto Regulation, Protection, Transparency and Oversight Act — to tighten regulations on the digital asset industry.
The proposal, which James called "the strongest and most comprehensive set of regulations on cryptocurrency in the nation,"[1] has the stated purpose to "protect customers and investors in digital assets from fraudulent practices, eliminate conflicts of interest and increase transparency."[2]
It would add a new layer of regulation on top of the existing regulatory framework for digital assets in the state, i.e., the BitLicense regime, and could challenge the business models of many digital asset companies that currently operate from or within New York state.
