New York Regulator Sets Advertising and Marketing Rules for Licensed Crypto Firms, With Policies Due by May 2027

New York's Department of Financial Services (DFS) has told every crypto company it licenses or charters to put formal, board-approved advertising and marketing policies in place, setting out in an industry letter dated 12 November 2026 what it expects those policies to cover: no false or misleading claims, clear and prominent risk disclosures, and a documented review process for everything the firm or its promoters publish.

The guidance, signed by Acting Superintendent Kaitlin Asrow, applies to BitLicense holders under 23 NYCRR Part 200 and to limited purpose trust companies chartered under the New York Banking Law to carry on virtual currency business. DFS said in its press release that firms are expected to update their policies by 10 May 2027, while the letter itself says compliant policies must be available for Departmental review effective 12 May 2027.

What Counts as Marketing and What Is Banned

The letter defines "Materials" broadly. It covers any content produced or distributed by a licensed firm, or on its behalf, that could reasonably be seen as promoting or inducing engagement with its virtual currency products, whether aimed at individuals or institutions, whatever it is labelled (a "call to action", a "fee comparison" or "education"), and in any medium, including social media, websites, blogs, podcasts and other audio or video, newsletters, road show materials, presentations, brochures and customer-facing technology.

On content, DFS says materials must not make false, misleading or deceptive representations or omissions, and that claims must be a fair portrayal of the product and be evidence-based and verifiable. It gives concrete examples of what review should catch: unsubstantiated or exaggerated claims, statements that create a false impression of competitiveness, such as advertising "no-fee trading" while leaving out spreads or markups, misleading performance figures that misstate time periods or show results from only part of a portfolio, and any false or implied claim about the regulatory or licensing status of a person or company.

On disclosures, the letter says they must always be clear and conspicuous. Materials that point to potential benefits must give a balanced account of risk and must not contain anything that could reasonably be read as a promise of gain or a guarantee against loss. Testimonials must carry a conspicuous statement that they may not be representative, and any compensation paid for them must be disclosed, including its nature and amount. DFS also says disclosures should not be hidden or minimised on any platform, citing as examples risk warnings given only at the end of a podcast after a long discussion of benefits, or shown only after a customer clicks "for more". Every piece of material must clearly identify the licensed or chartered firm that actually provides the product or service.

Board Approval, Promoters and Brand Abuse

Beyond the content rules, DFS expects each firm to build a governance framework sized to its customer base and business model. The letter says the advertising policies must be reviewed and approved every year by the board of directors or a designated board subcommittee. At a minimum, DFS expects a structure with clearly defined roles over advertising and marketing, a formal review and approval process with appropriate secondary review, and checks that all materials are factually accurate and comply with applicable law.

Firms are also expected to monitor for, and deal promptly with, fraudulent or wrongful use of their name or brand, giving impersonation accounts and unauthorised promotional schemes as examples. They should carry out due diligence when selecting and keeping third-party promoters and monitor what those promoters do, and make sure anyone acting on their behalf follows the firm's policies, applicable law and any regulator orders or agreements. Record-keeping must follow 23 NYCRR 200.18, including keeping evidence for any factual claim and copies of every approval, and the policies must be kept for the period set in 23 NYCRR 200.12(a).

The letter adds that the guidance is not exhaustive, that DFS may update it, and that it does not limit any other state or federal requirements that apply to the same firms.

What Happens Next for BitLicensees

The guidance is the first virtual currency industry letter DFS has issued since its September 2025 update on custody structures in insolvency, and it sits alongside earlier BitLicense guidance on coin listing, customer complaints and the fitness of senior managers. It does not create a new licence or change who needs one, but it turns advertising into a supervisory topic with a date attached.

DFS said it will assess both how firms apply the new policies and how well they work through examinations and ongoing supervisory monitoring. For BitLicensees and trust companies, that means marketing teams, affiliate and influencer programmes and fee-comparison pages should be reviewed against the letter well before May 2027, because examiners will be able to ask for the board-approved policy, the review trail behind each campaign and the evidence supporting any claim made to customers.