New York DFS proposes stablecoin rule changes on June 9 to align with GENIUS Act

The New York State Department of Financial Services on June 9 proposed revisions to its dollar-backed stablecoin framework to align the state regime with the federal GENIUS Act while preserving New York oversight where federal law permits. The proposal keeps the department’s June 2022 standards for one-to-one backing, redemption at par on demand, defined permissible reserve assets and mandatory independent audits, and adds a cap on how much reserve backing any single custodian can hold along with formal risk-management requirements covering internal controls, information security, audit systems, asset growth oversight, earnings management, insider and affiliate transactions, and service provider arrangements. Acting NYDFS Superintendent Kaitlin Asrow said New York’s existing virtual currency rules have protected consumers and supported market stability, adding that the proposal is intended to bring the state framework into full alignment with federal requirements while maintaining standards for responsible innovation. A preproposal comment window is open, with a 60-day formal comment period to follow after publication in the State Register. The move comes a week after NYDFS signed a cross-border supervision agreement with the European Banking Authority under the EU’s Markets in Crypto-Assets Regulation, as U.S. and European regulators coordinate more closely on stablecoin oversight. Under the GENIUS Act, signed into law by President Trump in 2025, issuers with $10 billion or less in outstanding supply may remain under state supervision if the Treasury Department determines the state regime is substantially similar to federal standards. New York wants the final rule to take effect when the federal law becomes operative, with existing state-licensed issuers receiving a one-year transition period while the 2022 guidance remains in force until then.