On January 14, 2026, New York lawmakers kicked off the year by introducing a major proposal to strengthen the state’s approach to cryptocurrency regulation: the Cryptocurrency Regulation Yields Protections, Trust, and Oversight Act, or “CRYPTO Act.” Announced by Manhattan District Attorney Alvin Bragg and State Senator Zellnor Myrie, the proposal would amend New York’s Financial Services Law to criminalize operating a virtual currency business without the required state license.

To conduct virtual currency business in New York State, entities must apply either for a BitLicense or for a charter under the New York Banking Law (for example, as a New York State limited purpose trust company or New York State bank) with approval…