The New York State Department of Financial Services (DFS) on Wednesday released regulatory guidance for U.S. dollar-backed stablecoins issued by DFS-regulated entities. According to a DFS statement, it is the first regulator in the United States to impose such expectations on a stablecoin issuer. The requirements in the guidance concern redeemability, reserves and attestation. They state that a stablecoin must be fully backed by reserves as of the end of every business day and the issuer must have a redemption policy approved in advance in writing by the DFS that gives the holder the right to redeem the stablecoin for …

The “long waves” of TerraUSD’s May 7 collapse, which we noted two newsletters ago, are extending even further. Last week brought some notable reactions to the stablecoin’s depegging in the East Asia region. A Chinese state-owned media outlet, the Economic Daily has signaled that the Chinese government may introduce even tighter regulations on cryptocurrencies and stablecoins due to the collapse of the Terra ecosystem. It might even mean a complete ban on stablecoins to prohibit ownership, transfer, purchase and sale of the assets, some experts believe. What China plans, Japan does — as a new law will limit the issuance …

As New York pursues efforts to ban proof-of-work (PoW) crypto mining, the attorney general reminded investors of the risks associated with investing in crypto. In an investor alert published Thursday, New York Attorney General Letitia James said that investors are “losing billions” in crypto. James highlighted that even digital assets that are well-known and traded in reputable exchanges can crash. Because of this, the attorney general is convinced that crypto investments create “more pain than gain” for investors. Apart from this, James urged New Yorkers to take extra caution when putting their money into crypto. Because of its volatility, the …

Last week, New York dominated crypto media headlines in very different ways. In New York State, the local Assembly voted in favor of the bill that would ban for two years any new mining operations that rely on proof-of-work (PoW) consensus mechanisms and use fossil fuel-generated energy. A temporary moratorium, which could be extended after the state’s Department of Environmental Conservation provides its assessments of the industry’s carbon footprint, marks the first major legislative attack on PoW mining on environmental grounds in the United States. The push mobilized the community — after digital asset advocacy groups rang the alarm on …

On April 26, the State of New York put itself at the forefront of the regulatory struggle with crypto, as its Assembly voted for a two-year moratorium on crypto mining operations that use energy generated by fossil-fuel power plants. Depending on how one looks at it, this development could either signal a new alarming legislative trend or a trigger that would accelerate the digital asset industry’s movement toward a more sustainable path. Moratorium with further evaluation The lower chamber of the NY state legislature, the Assembly, passed a bill that would put a two-year hold on any new mining operations …

New York City Mayor Eric Adams has hit out at his state’s BitLicensing regime, claiming that it stifles innovation and economic growth. In a closing keynote interview at the Crypto and Digital Assets Summit in London on Wednesday, Adams suggested his state legislature counterparts in Albany “listen to those who are in the industry” adding: “It’s about thinking not only outside the box, but on this one, we may have to destroy the box.” Adams is a crypto advocate who ran for mayor, planning to turn New York City into the “center of the cryptocurrency industry,” and took his first …

The New York State Assembly passed a bill late on Tuesday that would place a two-year ban on all new proof-of-work (PoW) cryptocurrency mining facilities in the state that use a carbon-based fuel to power their operations. The bill, sponsored by Anna Kelles, would not only impose a two-year hold on approval of any new Bitcoin mines, but the proposed moratorium would also prevent the renewal of permits issued to existing PoW cryptocurrency miners using carbon sourced energy if they seek to increase the amount of electricity consumed. Thrilled that my bill with Senate champion @kevinparkernyc A7389C/S6486D just passed in …

New York's legislature might ban proof-of-work (PoW) crypto mining in the state for at least two years, citing environmental concerns. Over the past weekend, on Saturday and Sunday, several crypto advocacy groups — including the Blockchain Association and Crypto Council for Innovation — rang the alarm over the upcoming vote in the New York Assembly. The state Senate's official webpage did not indicate a specific date for the vote. 1/ New York’s proposed moratorium on proof-of-work (S6486D/A7389C) mining has an unintended consequence - it puts innovation on the back burner. It would have significant implications for the security of major …

New York State Senator Kevin Thomas introduced a new bill amendment request to establish certain offenses related to rug pulls and other frauds related to virtual token distribution, misuse of private keys and hidden interests in crypto projects. The bill drafted by Senator Thomas, Senate Bill S8839, calls for defining, penalizing and criminalizing frauds specifically targeted at developers and projects that intend to dupe crypto investors. Through the bill, Thomas seeks to provide prosecutors with a clear legal framework against crypto crimes that align with the spirit of the blockchain while combatting fraud. It calls for a law amendment that …

In an important precedent, a Supreme Court judge in New York state’s Yates County ruled in favor of cryptocurrency mining firm Greenidge Generation, dismissing a petition filed by a coalition of environmental activists. According to an Apr. 7 press release by Greenidge, judge Daniel Doyle dismissed a petition against the Greenidge Generation Holdings that a group of environmental organizations — Sierra Club, Seneca Lake Guardian, Committee to Preserve the Finger Lakes, as well as a number of individuals — brought in an attempt to stop the mining operation at Seneca Lake. The petition also called to halt Greenidge’s plans to …

Three years and one veto after it was first proposed, Washington state Governor Jay Inslee has signed a bill into law today that aims to expand the state’s adoption of blockchain technology across various financial and industrial sectors. The law saw Governor Inslee order the formation of the Washington Blockchain Work Group which will “examine various potential applications for blockchain technology.” The Work Group will be composed of seven government officials and eight leaders of various trade associations across the state. It will study practical applications of blockchain technology and present a report on its findings to Governor Inslee by …

The “solid gold cube” crypto promo that surfaced in New York this week has turned out to be hollow on the inside, with onlookers online lampooning the stunt as an appropriate critique of the extravagant promises of crypto and blockchain tech. On Feb. 2, Artnet reported that a 24-carat 410 pound gold cube worth $11.7 million had been placed in Central Park surrounded by a “heavy security detail” as part of a promo for German artist Niclas Castello’s crypto project dubbed Castello Coin (CAST). New in NYC: A cube made from $11.7 million worth of solid gold is sitting in …