Regulators Flag Major Compliance Issues with Non-Domiciled CDLs in New York

A top regulatory official has raised serious concerns about New York's oversight of certain crypto-related digital licenses. According to recent statements, over half—approximately 53%—of the non-domiciled CDLs currently in circulation were issued without proper legal authorization.

The official has given New York a 30-day window to rectify the situation and bring these licensing practices into compliance with federal standards. The message is clear: get it right, or face consequences. If the state fails to take corrective action within this timeframe, enforcement could escalate dramatically, with potential financial penalties reaching tens of millions of dollars.

This move signals intensified scrutiny on how states manage crypto-related licenses and underscores the tension between state-level regulatory approaches and federal compliance expectations. For platforms and entities operating under these licenses, the clock is ticking.