Marton’s departure marks the end of an era for New York Department of Financial Services

Peter Marton, the head of the virtual currency division at the New York State Department of Financial Services (NYDFS), is leaving his position after four years of service. Marton announced his departure in a LinkedIn post on Tuesday, saying that he will be joining a private sector company in the fintech space.

Marton joined the NYDFS in 2019 as the deputy superintendent of research and innovation and was promoted to lead the virtual currency division in 2020. Under his leadership, the NYDFS granted several licenses and approvals to crypto-related businesses, including BitLicense, conditional BitLicense, trust charter, and sandbox authorization. Marton also oversaw the implementation of the Greenlist, a list of pre-approved cryptocurrencies that licensed entities can use without further approval from the regulator.

Marton said that he was proud of his achievements at the NYDFS and thanked his colleagues and industry partners for their collaboration and support. He also expressed his optimism about the future of crypto regulation in New York and beyond.

“I believe that New York continues to be a leader in fostering a responsible and innovative crypto ecosystem, and I look forward to seeing how it evolves in the coming years. I also hope that other jurisdictions will follow New York’s example and adopt a balanced and forward-looking approach to crypto regulation that protects consumers and promotes innovation,” he wrote.

So why did Marton decide to leave NYDFS? According to his official statement, he wanted to pursue new opportunities in the private sector, where he could leverage his experience and knowledge to help businesses navigate the evolving regulatory landscape. He did not specify what kind of role or company he was looking for, but he expressed his gratitude and appreciation for his colleagues and partners at NYDFS.

Some analysts speculated that Marton’s decision might have been influenced by the recent changes in the leadership and direction of NYDFS. In June, Governor Andrew Cuomo appointed Linda Lacewell as the new superintendent of NYDFS, replacing Maria Vullo, who had served since 2016. Lacewell is a former prosecutor and chief of staff to Cuomo, and she has indicated that she intends to focus more on consumer protection and enforcement actions against financial misconduct.

Marton’s resignation might also reflect the challenges and pressures that regulators face in keeping up with the fast-paced and dynamic nature of the financial sector. As technology and innovation create new opportunities and risks for consumers and businesses, regulators have to balance the goals of fostering growth and innovation, while ensuring safety and soundness. Marton’s role at NYDFS required him to deal with a wide range of issues and stakeholders, from banks and insurers to startups and investors, to lawmakers and advocates.

Whatever his reasons, Marton’s departure marks the end of an era for NYDFS, and the beginning of a new chapter for him. He leaves behind a legacy of accomplishments and contributions that have shaped the state’s financial regulation for years to come. He also leaves behind a gap that will be hard to fill for NYDFS, which will have to find a successor who can match his skills and vision.

Marton did not disclose the name of the company he will be joining but said that he will share more details soon. He also said that he will remain involved in the crypto space as an advisor, investor, and enthusiast. Marton was one of the key figures in shaping and enforcing the state’s regulatory framework for the financial sector, especially in the areas of cybersecurity, fintech, and cryptocurrency.

Marton’s departure came as a surprise to many observers, who praised his leadership and expertise in overseeing some of the most complex and innovative aspects of the financial industry.