The New York State Department of Financial Services has released proposed rules for stablecoins, aligning them with the federal GENIUS Act.

CoinFeed reported on June 10 that the New York State Department of Financial Services (DFS) announced a proposed regulation on June 9 to adjust its framework for issuing dollar-denominated stablecoins in accordance with the federal GENIUS Act. The new rule retains the DFS's existing requirements for dollar-denominated stablecoins, including reserves and redeemability, eligible reserve assets, and independent auditing, while adding new federal provisions, including: setting a maximum limit on the reserve assets held by a single custodian; requiring entities to establish risk management plans covering internal controls and information security; establishing an internal audit system; managing asset growth and returns; regulating insider and related-party transactions; and regulating service provider arrangements. The proposed rule is open for 10 days for preliminary comments, followed by a 60-day comment period after its publication in the state register. The final rule will take effect simultaneously with the GENIUS Act, and existing New York-licensed issuers will have a one-year transition period.