October 16, 2021

Volume XI, Number 289

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NYS Department of Financial Services (DFS) Publishes All BitLicense Comments; California Considers Regulation

On December 3, the New York State Department of Financial Services (DFS) published all 3,746 public comments it received on the proposed “BitLicense” regulatory framework that would cover businesses participating in “virtual currency business activities.” Through his Twitter account announcing the comments, DFS Superintendent Benjamin Lawsky stated that a revised BitLicense proposal should be produced later in the month.

Among the comments received by DFS were those from Manhattan District Attorney Cyrus Vance Jr. (expressing concern that an entity with a BitLicense would not be subject to New York State Banking Law, and thereby the penalties for violation of Banking Law), financial services provider Western Union (providing comment on anti-money laundering requirements and the application of the BitLicense to entities already licensed as money transmitters) and national retailers Walmart and Amazon (expressing concern that the BitLicense could be read broadly to cover gift card, electronic credit and other more traditional retail product offerings). All comments received in the public comment period may be retrieved at the Department of Financial Services website

On December 4, a California Business Oversight Department spokesman told Businessweekthat the department believes that California could regulate virtual currency business under current state law, with consumer protection as the core concern. The text of the relatedBusinessweek article is available here.

©2021 Katten Muchin Rosenman LLPNational Law Review, Volume IV, Number 340
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About this Author

Claudia Callaway, Litigation Lawyer, Katten Muchin
Partner

Claudia Callaway is chair of Katten’s Consumer Finance Litigation practice and co-chair of the Class Action and Multidistrict Litigation practice. She focuses her practice on the defense of state and federal class actions regarding consumer protection and consumer finance laws and representation of clients before the Consumer Financial Protection Board (CFPB), the Federal Trade Commission (FTC) and state banking agencies.

Claudia represents consumer lenders, third-party debt collectors and other consumer  financial services clients in class action suits and...

202-625-3590
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