New York Proposes GENIUS-Aligned Stablecoin Rules

The New York State Department of Financial Services on June 9, 2026 proposed a regulation to align its June 2022 stablecoin guidance with the federal GENIUS Act. The draft keeps full 1:1 dollar backing and on‑demand redeemability, adds limits on reserves held at a single custodian and requires a formal risk‑management program. The department said it will seek U.S. Treasury certification as a substantially similar state regime so qualifying issuers can remain under state supervision.

The proposal, announced by Acting Superintendent Kaitlin Asrow, codifies New York’s existing rules on reserve backing, permitted reserve asset categories and independent third‑party audits. The proposal adds specific caps on how much of an issuer’s reserves may be held with any one custodian to reduce concentration risk. It also requires documented policies and procedures addressing internal controls and other operational risks.

The required risk‑management program must cover internal control frameworks, information security protections, an internal audit function, monitoring of asset growth and earnings, protocols for insider and affiliate transactions, and oversight of service providers. Issuers would be expected to maintain written documentation and to test key controls on a regular schedule.

NYDFS opened a 10‑day preproposal comment window on June 9. A formal 60‑day comment period will follow once the proposal is published in the New York State Register. The department said the final rule would take effect on the same date the GENIUS Act becomes effective. Licensed issuers already operating in New York would have one year to comply with the new custodian concentration and risk‑management requirements. Until the rule takes effect, the June 2022 Stablecoin Regulatory Guidance remains in force.

The GENIUS Act allows stablecoin issuers with $10 billion or less in supply to opt for state regulation if Treasury certifies the state regime as substantially similar to federal standards. NYDFS framed its draft as matching the federal baseline and indicated it plans to pursue Treasury certification from the federal framework’s start date so New York‑licensed issuers can continue under state oversight.

New York is home to several licensed stablecoin issuers, including Paxos and Gemini. For firms that already meet the 2022 guidance, the department said the main adjustments during the one‑year transition will involve formalizing risk‑management programs and changing custody arrangements where needed to meet concentration limits.

In a statement, Acting Superintendent Kaitlin Asrow said the department’s rules have protected New Yorkers and supported a stable market, and that aligning the state regulation with the GENIUS Act will keep New York’s framework consistent with new federal requirements while maintaining consumer protections and support for innovation.