Manhattan District Attorney Alvin Bragg has co-sponsored legislation to make it a crime for New York businesses to handle cryptocurrency without a license. The proposed CRYPTO Act would impose felony charges carrying up to 15 years in prison for those processing over $1 million in transactions. This move aims to align state law with federal standards and combat crypto-related crimes.
On January 15, 2026, Manhattan District Attorney Alvin Bragg announced his support for the CRYPTO Act, a new bill co-sponsored with State Senator Zellnor Myrie. The legislation seeks to criminalize unlicensed dealings in cryptocurrency by New York businesses, which currently face only civil penalties under state law despite potential federal criminal charges.
Under the proposed measure, business owners handling crypto exchanges, trades, or transmissions without a virtual currency license could face prosecution. Felony penalties of up to 15 years in prison would apply if more than $1 million in transactions are processed.
Bragg emphasized the risks posed by cryptocurrency in a statement: “The shadow financial system created by the explosion of cryptocurrency has created an ideal vehicle for money laundering and other crimes in New York State. Crypto is the go-to means for bad actors to move and hide the proceeds of crime.” He added, “It is long past time for businesses that operate without a virtual currency license and flout due-diligence requirements to face criminal penalties.”
The DA highlighted crypto enforcement as a key priority for his second term. During a public safety discussion at New York Law School on January 14, he noted that hard-to-trace transactions enable criminal activity and stressed that “getting our arms around this is key for systemic accountability.”
Senator Myrie supported the bill, stating, “New York is the financial capital of the world and we need to take our responsibilities to the marketplace seriously.” He explained that the measure would align New York with 18 other states that treat unlicensed crypto operations as crimes, thereby protecting consumers from fraud, scams, and financial crimes.