NY Regulator Urges Blockchain Tools Amid Crypto Adoption

• NY regulator directs banks to adopt blockchain analytics for compliance.
• Guidance coincides with crypto firm Bullish's new licenses from NYDFS.

The New York State Department of Financial Services (NYDFS) has issued new guidance urging banks to integrate blockchain analytics into their compliance programs. On September 17, 2025, The Block reported that the policy targets money laundering and terrorist financing risks as traditional banks expand their involvement with digital assets.

NYDFS Superintendent Adrienne Harris emphasized the need for evolving compliance practices in response to the banking sector’s increasing engagement with virtual currencies. She noted, "As traditional banking institutions expand into virtual currency activities, their compliance functions must adapt, onboarding new tools and technologies to mitigate new and different risks."

The regulatory guidance encourages banks to use blockchain analytics for better risk identification, recommending practices such as screening customer wallets and assessing risks tied to new digital asset offerings. The NYDFS stressed the pivotal role financial institutions play in safeguarding the financial system's integrity against illegal activities.

In a related development, the NYDFS granted both a BitLicense and a Money Transmission License to Bullish, a company specializing in cryptocurrency market infrastructure and information services. This dual approval underscores the regulator’s balanced approach to promoting innovation while bolstering compliance.

As of September 17, 2025, Bitcoin (BTC) is trading at $26,452 with a 1.7% increase in 24-hour trading volume, while Ethereum (ETH) is priced at $1,621, reflecting a 1.3% increase during the same period, according to CoinMarketCap.