The New York State Department of Financial Services has released proposed regulations for stablecoins, aligning with the federal GENIUS Act

On June 9, the New York State Department of Financial Services (DFS) announced a proposed regulation aimed at adjusting its dollar stablecoin issuance framework in accordance with the federal GENIUS Act. The new rules retain the original requirements of the DFS for dollar stablecoins, including reserves and redeemability, qualified reserve assets, independent audits, etc., and add new federal provisions, including: setting a maximum limit on reserve assets held by a single custodian; requiring entities to establish a risk management plan covering internal controls and information security; establishing an internal audit system; managing asset growth and income; regulating transactions with insiders and related parties; and regulating service provider arrangements.

The proposed rules enter a 10-day pre-proposal comment period starting today, followed by a 60-day comment period after publication in the state register. The final rules will take effect simultaneously with the GENIUS Act, and existing licensed issuers in New York will enjoy a one-year transition period. Until then, the DFS's stablecoin regulatory guidance remains in effect.