New York Proposes Stablecoin Rules Aligned with the Federal GENIUS Act

According to The Block, on June 10 local time, the New York State Department of Financial Services (NYDFS) formally proposed regulatory rules for "Authorized Payment Stablecoin Issuers." Building upon the 2022 guidance framework—which includes core requirements such as 1:1 USD reserves, redeemability, and independent audits—the new rules introduce additional provisions: reserve assets must be diversified across custodians with a concentration limit for any single custodian; issuers with outstanding issuance exceeding $25 billion must hold an additional minimum of 0.5% of reserves (capped at $500 million) in insured depository institutions; redemptions must be completed within two business days; and the re-pledging of reserve assets and interest payments are prohibited. The rules explicitly align with the federal GENIUS Act’s “substantially similar” certification standard, aiming to preserve New York State’s regulatory authority over issuers with outstanding issuance below $10 billion. A 10-day pre-comment period has opened, followed by a 60-day formal comment period. The final rules will take effect concurrently with the GENIUS Act, and existing licensed issuers will be granted a one-year compliance transition period.