✓ Official source
New York's financial regulator tells crypto firms: no 'no-fee' spin, no buried risk disclosures, and the board signs off on marketing
Summary
The New York State Department of Financial Services issued an industry letter dated Nov. 12, 2026, setting out its expectations for how licensed crypto firms advertise and market virtual currency products, signed by Acting Superintendent Kaitlin Asrow.
The guidance applies to BitLicense holders and limited purpose trust companies chartered to do virtual currency business, and requires them to keep advertising and marketing policies that their board, or a board subcommittee, reviews and approves every year.
It says marketing must not be false, misleading or deceptive, must disclose material risks clearly and conspicuously, and must not imply a promise of gains or a guarantee against loss.
Firms must have policies consistent with the guidance available for the department's review starting May 12, 2027, according to the letter; The Block also reported the new standards.
Key facts
- NYDFS gives 'no-fee trading' claims that omit other costs such as spreads or markups as an example of a misleading impression of competitiveness.
- Testimonials must conspicuously state that they may not be representative, and any compensation paid for them must be disclosed, the guidance says.
- Disclosures must not be obscured, the letter says, citing examples such as risk disclosures only at the end of a podcast or behind a 'click for more' link on social media.
- Firms are expected to vet and monitor third-party promoters and to watch for impersonation accounts and unauthorized promotional schemes using their brand.
- The guidance defines covered 'Materials' broadly, including social media, websites, blogs, newsletters, audio or visual content and anything labeled 'education' or 'fee comparison' that promotes the firm's crypto products.