meta_id 3224409

On June 9, 2026, the New York State Department of Financial Services (DFS) announced a proposed regulation to harmonise its stablecoin framework with federal requirements under the GENIUS Act (Governance to Ensure New Issuance of Stablecoins Uniformly Supports Interoperability and Transfers Act). Acting Superintendent Kaitlin Asrow said the proposal builds on DFS's first-in-the-nation stablecoin framework, which the Department established through guidance published in June 2022. The proposed regulation maintains DFS's existing requirements for U.S. dollar-backed stablecoins issued under DFS oversight, including provisions on backing and redeemability, permissible reserves, and independent audits. The proposal introduces new federal provisions requiring entities to establish maximum amounts of reserves held at any single custodian and adopt comprehensive risk management programmes addressing internal controls, information security, internal audit systems, asset growth, earnings, insider and affiliate transactions, and service provider arrangements. These requirements align with the U.S. Department of Treasury's proposed framework for state certification under the GENIUS Act. DFS stated that the regulatory regime protects consumers while fostering responsible innovation in the virtual currency market. The Department emphasised its commitment to maintaining pace with industry evolution through data-driven policy, regular engagement with industry stakeholders and consumer advocates, and ongoing monitoring of market trends. The proposed regulation is subject to a 10-day preproposal comment period beginning June 9, 2026, followed by a 60-day comment period upon publication in the State Register. The final regulation will take effect when the GENIUS Act becomes effective, with a one-year transition period for existing New York-licensed issuers. Until the regulation becomes applicable, DFS's Stablecoin Regulatory Guidance remains in effect. Feedback can be submitted via the DFS website.