NYDFS Proposes Stablecoin Rules Aligned with the GENIUS Act

Acting Superintendent Kaitlin Asrow of the New York State Department of Financial Services announced a proposed rulemaking to bring the state’s stablecoin framework into line with the federal GENIUS Act. The proposal retains existing requirements for U.S. dollar‑backed stablecoins, such as backing and redeemability, permissible reserves and independent audits, and adds new provisions including caps on the amount of reserves any one custodian may hold and mandatory risk‑management programs covering internal controls, information security, internal audits, asset growth, earnings, insider and affiliate transactions, and service‑provider arrangements.

A 10‑day pre‑proposal comment period begins today, followed by a 60‑day comment period after the rule is published in the State Register. The final regulation will become effective when the GENIUS Act is enacted, with a one‑year transition period for existing New York‑licensed issuers. Until then, the Department’s existing Stablecoin Regulatory Guidance remains in force.