Overview
- The New York Department of Financial Services published draft stablecoin rules on June 9 that align state regulation with the federal GENIUS Act and start a 10‑day preproposal comment window before a 60‑day formal review.
- The proposal preserves New York’s nonnegotiable standards of 100% reserve backing, guaranteed redeemability at par, and mandatory independent audits for licensed USD‑backed payment stablecoins.
- New measures would cap how much reserve assets a single custodian can hold and require enterprise risk programs covering internal controls, information security, internal audit, related‑party oversight, growth and earnings monitoring, and third‑party supervision.
- DFS says it will seek certification from the federal Stablecoin Certification Review Committee so qualifying issuers keep state supervision under the GENIUS Act, and the draft mirrors federal limits that generally bar large nonfinancial public companies from issuing payment stablecoins without unanimous committee approval.
- The rule is timed to take effect with the GENIUS Act on January 18, 2027, gives existing New York licensees a one‑year transition to comply, and builds on NYDFS’s 2022 guidance while using a new MOU with the European Banking Authority to strengthen cross‑border supervision.