TLDR Tech / Crypto
New York Proposes Stablecoin Rule Changes
New York's Department of Financial Services has proposed regulations aligning its existing stablecoin framework with the federal GENIUS Act, positioning the state to seek certification under the Treasury's framework for state-level regulators. The draft requires authorized issuers to back outstanding tokens one-to-one with high-grade liquid instruments, introduces new limits on how much reserve can sit with any single custodian, and mandates risk management programs covering internal controls, information security, audits, asset growth, earnings, insider transactions, and service provider oversight. The move effectively positions New York as a blueprint for how state regulators can stay relevant once a federal stablecoin framework is fully operational, rather than being preempted by it.
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