The New York State Department of Financial Services has proposed a regulation updating its stablecoin framework so the New York regime for U.S. dollar-backed stablecoins issued under its oversight aligns with federal requirements under the GENIUS Act. The proposal retains the department’s existing requirements on backing and redeemability, permissible reserves, and independent audits, while adding provisions intended to meet the U.S. Department of Treasury’s proposed standards for state frameworks seeking GENIUS certification. The new elements include limits on how much of a stablecoin’s reserves may be held at a single custodian and a requirement for issuers to maintain risk management programs covering internal controls, information security, an internal audit system, asset growth, earnings, insider and affiliate transactions, and service provider arrangements. The proposal builds on the department’s June 2022 stablecoin guidance, which remains in effect until the regulation becomes applicable. The rule is subject to a 10-day preproposal comment period, followed by a 60-day comment period once it is published in the State Register. The final regulation is set to take effect when the GENIUS Act becomes effective, with a one-year transition period for existing New York-licensed issuers.
New York State Department of Financial Services2026-06-09
New York State Department of Financial Services proposes stablecoin rule to align New York framework with GENIUS Act requirements
The New York State Department of Financial Services has proposed a regulation updating its U.S. dollar-backed stablecoin framework to align with federal requirements under the GENIUS Act while retaining existing rules on backing, redeemability, permissible reserves, and independent audits. New elements include concentration limits on custodians of reserves and a requirement for issuers to maintain comprehensive risk management programs, building on the department’s June 2022 stablecoin guidance.