Top NY Regulator Updates Crypto Guidance after Announcing Departure

Adrienne Harris, the superintendent of the New York Department of Financial Services (NYDFS), has announced updates to the department’s guidance regarding crypto companies and insolvency, just before her impending departure on October 18, 2025. The revised guidance aims to enhance protections for crypto users during insolvency proceedings, clarifying acceptable sub-custodians and allowable customer asset utilization. Notably, custodians must maintain users' cryptocurrencies in separate or omnibus onchain wallets and cannot utilize these assets for their own purposes, such as securing credit. The updates follow criticisms of New York's BitLicense program and aim to adapt to the evolving digital asset landscape, ensuring user safety. Following Harris, Kaitlin Asrow will serve as acting superintendent while the search for a permanent successor begins. This change comes amid broader shifts in New York's regulatory leadership, including announcements from Mayor Eric Adams, who is also expected to make significant changes in 2025.

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