New York regulator tells licensed crypto firms to police their advertising, including 'no-fee' claims and paid testimonials

New York's financial regulator told licensed crypto companies on Thursday, November 12, 2026, to put written policies in place for their advertising and marketing, including rules on "no-fee" claims, paid testimonials and risk disclosures. The New York State Department of Financial Services (DFS), also known as NYDFS, set a deadline in May 2027, according to its guidance letter and a press release.

What the guidance requires

The letter, from Acting Superintendent Kaitlin Asrow, says the companies "must develop, maintain, and enforce comprehensive policies and procedures on advertising and marketing." A company's board, or a board subcommittee, has to review and approve those policies every year.

The guidance has three parts.

• Content. Marketing material must not be false, misleading or deceptive, and claims must be "evidence-based and verifiable." The letter lists exaggerated claims, misleading statements about performance and false statements about a company's regulatory status as examples.
• Disclosures. Disclosures must be "clear and conspicuous." The letter says effective policies will ensure that material mentioning the benefits of a product also gives a balanced account of its risks and contains nothing that could reasonably be read as a promise of gain or a guarantee against loss. Disclosures should not be obscured, for example by giving them only at the end of a podcast or behind a "click for more" link. The licensed company that provides the product has to be clearly identified.
• Governance. The letter says effective policies will generally include a formal review and approval process with a second review, due diligence on and monitoring of third-party promoters, records that support factual claims, and a way to spot and deal with misuse of the company's name, such as impersonation accounts.

Who and what it covers

The definition of marketing material is broad. It includes any content made by or for a company that could reasonably be seen as promoting its crypto products, whatever it is called. The letter mentions material labeled as "education" or a "fee comparison," and it lists social media, websites, audio and visual content, newsletters and presentations among the channels.

The department said in the press release that it will assess how companies apply the policies through examinations and supervision.

Why it matters

New York has licensed crypto companies since June 2015, when the department issued its virtual currency regulation, known as the BitLicense. A company that does virtual currency business involving New York or its residents needs that license or a New York trust charter approved for the activity, according to the department. The guidance does not create a new regulation; the letter says it does not limit any law or rule. It tells license holders what examiners will expect to see.

What it could mean for traders

For customers of New York-licensed platforms, the visible changes, if companies follow the guidance, would be in how fees and risks are presented: "no-fee" claims would need to mention other costs such as spreads, and paid testimonials would need to say that they are paid. In our assessment, the guidance is likely to matter most for companies that rely on affiliates and social media promoters, because it expects the license holder to vet and monitor those promoters.