Debra Brookes’ new function with the New York State Division of Monetary Providers might recommend extra of a give attention to regulation by way of enforcement.
An lawyer who has been working at New York’s Division of Monetary Providers, or NYDFS, since 2013, Brookes has served in key roles within the division’s Enforcement Division, Monetary Frauds and Client Safety Division, and Client Safety and Monetary Enforcement Division earlier than changing into deputy digital foreign money chief for its Analysis and Innovation Division in March. Previous to that, she labored as a trial lawyer with the US Division of Justice for 5 years, main and collaborating in “complicated white-collar investigations.”
Although the previous DOJ lawyer’s views on crypto haven’t been extensively reported, she did contribute to a NYDFS report concerning the July 2020 hack on Twitter, which resulted in lots of high-profile accounts sending tweets fraudulently promising followers that they’d double Bitcoin (BTC) funds despatched to a particular tackle. That report concluded that “cryptocurrency corporations had strong packages round cybersecurity, fraud-prevention, and anti-money laundering packages.”
With regulatory authority over many crypto exchanges and companies, the NYDFS has authorized Goldman Sachs-backed crypto custodian BitGo to operate as an independent custodian in New York. The regulator has additionally granted BitLicenses — digital foreign money licenses that permit companies to do enterprise with clients and corporations based mostly within the state — to each international crypto payments processor BitPay and institutional cryptocurrency alternate Bakkt.
Brookes works underneath Jon Blattmachr, who has been the NYDFS’ digital foreign money chief since October 2020.