Former NYDFS Chief Turned Digital Currency Consultant

Following the appointment of several former federal officials to the strategic board of some bitcoin startups, New York Department of Financial Services (NYDFS) superintendent Benjamin Lawsky announced his plans to step down and form a digital currency consulting group.

Anonymous sources cited that the former NYDFS chief is set to create a legal consulting firm to advise clients on matters involving bitcoin and digital currencies. Prior to this, the NYDFS already announced in a press release that Lawsky will leave office in late June after his four-year stint.

Digital Currency Consulting

“I am deeply proud of the work our team has done building this new agency and helping strengthen oversight of the financial markets. We have assembled a great team at NYDFS and I have full confidence that the critical work of this agency will continue seamlessly moving forward,” said Lawsky in a statement.

Recall that Lawsky was one of the proponents of New York’s BitLicense framework, which espouses oversight on the digital currency industry. This has proved to be troublesome for some bitcoin startups but now that Lawsky will be offering legal advice on these matters, regulation might not be such a huge burden or a source of confusion for these firms.

However, a source also revealed that Lawsky has no intention to work for the companies being regulated by the NYDFS. According to the regulator, the final version of BitLicense is set for release before the end of the month.

“The public has lost a real hero,” said Dennis Kelleher, president and CEO of Better Markets, a consumer advocacy group. “Unlike too many other prosecutors, Ben Lawsky wasn’t impressed or intimidated by the rich, powerful and well-connected banks and bankers on Wall Street or their many hired guns. He enforced the law without fear or favor, from the suites to the streets.”