NYDFS Tightens Crypto Rules, Giving Firms Until May 2027 to Tackle Influencer Misconduct

The NYDFS issued new regulatory guidance that tightens oversight on cryptocurrency company advertising. The measure requires licensed entities to assume full responsibility for influencers, third-party promoters, and brand impersonators operating within the digital ecosystem, setting a deadline of May 10, 2027, to implement compliance protocols.

Under the new guidelines presented by Acting Superintendent Kaitlin Asrow, regulated firms must ensure that any promotional claim is backed by verifiable evidence, strictly prohibiting exaggerated statements or those that conceal fees and risks. Additionally, the regulation mandates rigorous internal due diligence controls over third parties, full transparency in paid testimonials, and mandatory annual reviews of their marketing policies.

This step by the NYDFS aims to shield investors against the global surge of impersonation scams on social media. Compliance with these guidelines will be directly overseen by the regulator during its periodic audits, marking a milestone in the supervision of marketing campaigns within the crypto sector.

Source: https://www.dfs.ny.gov/industry-guidance/industry-letters/il20261110-guidance-on-advertising-and-marketing

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