NYDFS Chief to Resign Amid Reported Tension with Governor’s Office

Infighting between the New York State Department of Financial Services and the governor’s office has reportedly led to the resignation of key figures.

AccessTimeIconOct 28, 2015 at 6:28 p.m. UTC
Updated Sep 11, 2021 at 11:57 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Infighting between the New York State Department of Financial Services (NYDFS) and the state governor’s office has reportedly led to the resignation of key figures.

reported Monday that Anthony Albanese, acting superintendent of the NYDFS and successor to BitLicense architect Benjamin M Lawsky, is set to resign alongside agency spokesman Matthew Anderson. According to Bloomberg News, Albanese will depart in December.

Under Lawsky – who left office in June – the NYDFS developed the BitLicense, a licensure scheme for digital currency companies operating in the state of New York. As head of the NYDFS, Albanese has overseen the initial roll-out of the regulatory framework.

The driving force being the resignations, according to WSJ and Bloomberg sources, is alleged interference from the governor’s office into NYDFS activities.

The office of New York Governor Andrew Cuomo has reportedly tried to interfere with the NYDFS subpoena process by requiring that it be notified prior to subpoenas being issued – a charge the governor’s office has denied.

Contributing to the strain were reported conflicts over monetary penalties extracted by the NYDFS, which since its creation in 2011 has reaped billions of dollars in settlements from some of the city’s largest financial institutions. Some of those institutions, especially those headquartered overseas, are said to have complained about the fines to Cuomo’s office.

“Mr. Cuomo’s staff has sought in recent months to exert more control over the regulator, which has established itself as a powerful financial watchdog and brought billions of dollars in penalties to New York state’s general fund,” the Journal reported. “The regulator was also unpopular on Wall Street, where some executives felt the department at times overreached on Mr. Lawsky’s watch.”

Albanese said this week that the move out of NYDFS was always in the works, saying in a statement provided to Bloomberg:

“After four years at DFS, I decided it was time to return to the private sector and I have accepted another opportunity outside of government. This was always intended to be a temporary position to help smooth the transition process.”

Tug of war image via Shutterstock

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.