The BitLicense, introduced by the New York State Department of Financial Services, is particularly notable. It requires companies engaging in virtual currency activities in New York to obtain the license, regardless of their federal registration status. This highlights how state regulators will continue to oversee crypto activities, setting additional regulatory requirements for businesses dealing with digital assets.
State regulators in major financial hubs like New York and California will remain active in shaping the crypto sector, ensuring that activities within their jurisdictions comply with both general financial services laws and state-specific crypto regulations. The outlook of these regulators may not always align with federal policies, especially if shifts in political power at the federal level prompt state regulators in blue states to strengthen their own oversight.
Unresolved State Law Issues Affecting Crypto
Despite potential federal regulatory updates, state law issues, such as property ownership and legal liabilities associated with digital assets, will remain largely unaffected. The legal status of decentralized autonomous organizations (DAOs), for example, continues to be uncertain, and there is ongoing litigation surrounding their structure and liabilities. Many DAOs operate without formal legal entities, increasing the risk for members or token holders who could face personal liability for the organization’s actions.
