S7420

The New York State Senate passed legislation to modernize the Department of Financial Services' regulatory authority over unlicensed financial entities, including cryptocurrency businesses. Senate Print 7420, sponsored by Sen. Krueger, grants DFS oversight mechanisms and civil penalty authority to pursue unlicensed entities in the banking, insurance, and cryptocurrency sectors that currently operate without state supervision. "We live in a world where in the banking industry, the insurance industry, the cyber currency industry, a new something pops up every day," Krueger said, noting that consumers are losing money to unregulated businesses that DFS lacks authority to address. The bill passed on a 41-19 vote, with 19 Republicans voting against it. Krueger expressed hope the measure would advance in both chambers this year, describing it as essential to keeping regulatory oversight current with emerging financial technologies and business models.

The Senate passed S7420, sponsored by Sen. Krueger, an act to amend the Financial Services Law, on a roll call vote of 40-21. The bill, which was Calendar Number 1718, took effect immediately upon passage. The measure drew opposition from 21 senators, primarily from the Republican conference, including Sens. Ashby, Borrello, Canzoneri-Fitzpatrick, Gallivan, Griffo, Helming, Lanza, Martins, Mattera, Murray, Oberacker, O'Mara, Ortt, Palumbo, Rhoads, Rolison, Stec, Tedisco, Walczyk, Weber and Weik. No floor debate was recorded on the bill prior to the vote.