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