TechFlow News, June 10: According to The Block, the New York State Department of Financial Services (NYDFS) officially proposed stablecoin regulatory rules titled “Authorized Payment Stablecoin Issuers” on June 10 local time. Building upon the 2022 guidance framework—which includes core requirements such as 1:1 U.S. dollar backing, redeemability, and independent audits—the new rules introduce several additional provisions: reserve assets must be held in diversified custody, with a cap on concentration at any single custodian; issuers with issuance scales exceeding $25 billion must hold at least 0.5% of reserves (capped at $500 million) in FDIC-insured depository institutions; redemptions must be completed within two business days; and rehypothecation of reserve assets and interest payments on reserves are prohibited.
The rules explicitly align with the “substantially similar” certification standard under the federal GENIUS Act, aiming to preserve New York State’s regulatory authority over issuers with issuance scales below $10 billion. A 10-day pre-comment period has now opened, followed by a formal 60-day public comment period. The final rules will take effect concurrently with the GENIUS Act, and existing licensed issuers will be granted a one-year compliance transition period.
