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Financial Institutions Division seeks IT examiners and crypto‑tracking tools as fintech activity rises
Summary
The Financial Institutions Division requested an IT‑focused examiner, chain‑analysis software for cryptocurrency investigations, three examiner positions funded after the prior session and a deputy commissioner assignment focused on depository and fiduciary IT risks.
The Financial Institutions Division on Feb. 14 told the committee it needs specialized staff and tools to regulate emerging technology risks, including cybersecurity and cryptocurrency activity among licensed entities.
Commissioner Sandia Laughlin and Deputy Commissioner Mary Young said the agency is self‑funded and licenses roughly 1,900 entities; they requested an IT examiner position to create an IT‑examination program focused on cybersecurity and crypto risk. Laughlin said the state does not currently have a combined IT‑examiner position and that the new hire would build a program of IT assessments and then conduct IT exams of licensees.
The division also requested chain‑analysis and blockchain‑investigation software to trace cryptocurrency activity and to assist examiners and investigators when fintech licensees hold or transfer virtual assets. "We don't know what we don't know," Laughlin said, noting the division has referred fraud and theft cases to local financial‑crimes units and to the Attorney General when appropriate.
Other budget items included continued funding for three examiner positions authorized in the previous session but added during the interim without Interim Finance Committee approval, and a requested deputy commissioner to oversee depository and fiduciary institutions on IT, cryptocurrency and safety-and‑soundness matters. James Kirkpatrick confirmed related director’s-office cost‑allocation adjustments would transfer licensing staff and IT funding across accounts.
Ending: Committee members asked the division to clarify workloads and to justify ongoing funding; officials said the IT examiner would have substantial, ongoing work given the number of licensees and rising cybersecurity risk.
