NYDFS to establish new research and innovation division

The New York State Department of Financial Services (NYDFS) has announced it will be launching a new research and innovation division focusing on digital currencies.

According to a press release posted on the Department of Financial Services website, superintendent Linda Lacewell announced the establishment of the new division at the DFS alongside a number of leadership appointments.

Matthew Homer will head the new division as executive deputy superintendent while Matthew Siegel and Olivia Bumgardner will be deputy superintendents.

“The financial services regulatory landscape needs to evolve and adapt as innovation in banking, insurance, and regulatory technology continues to grow,” superintendent Lacewell said.

“This new division and these appointments position DFS as the regulator of the future, allowing the Department to better protect consumers, develop best practices, and analyse market data to strengthen New York’s standing as the centre of financial innovation.”

The new research and innovation division will reportedly support the internal transformation and market innovation of the DFS, ensuring it keeps pace with the ever-changing financial services industry and that New York remains the jurisdiction of choice for innovators.

The division will be responsible for licensing and supervising virtual currencies.

It will also assess new efforts to use technology to address financial exclusion, identify and protect consumer data rights, and encourage innovations in the financial services marketplace.

It is the hope of the NYDFS that this new division will place the state of New York as the leading jurisdiction for cryptocurrencies within the United States.

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