The New York State Department of Financial Services has suggested new stablecoin rules to match federal requirements from the GENIUS Act. The proposal keeps New York’s current standards for reserves, redemption, audits, and consumer protection, but adds new risk management rules similar to federal ones. This shows how regulators are adjusting to the first major U.S. stablecoin law while trying to keep markets stable and protect investors.
Acting Superintendent Kaitlin Asrow said New York’s virtual currency rules have helped protect consumers and encourage responsible innovation since stablecoin guidance began in 2022. The new proposal aims to keep state-regulated issuers in line as federal rules grow.
With the new rules, stablecoin issuers would need better controls for cybersecurity, compliance, audits, tracking asset growth, insider deals, and outside service providers. The rules would also limit how much reserve can be kept with one custodian to lower risk.
The proposal comes as federal agencies keep working on rules under the GENIUS Act. Many in the industry like having clearer stablecoin rules, but some worry that strict requirements could make things harder for decentralized finance apps.
The NYDFS proposal will go through a public review before it becomes final. If approved, current New York-licensed stablecoin issuers will have one year to adjust.
This move shows that state and federal officials are working together more to regulate stablecoins, trying to balance new ideas with financial stability.
Today, DFS proposed a regulation to build on New York’s nation-leading stablecoin framework and align the Department’s longstanding standards with new federal requirements under the GENIUS Act.
Release: https://t.co/u3aFzNb9oG pic.twitter.com/Zyi1pIwpc2
— NYDFS (@NYDFS) June 9, 2026
Press Release: dfs.ny.gov
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