NYDFS Proposes Stablecoin Regulation Aligning With Federal GENIUS Act, Sets 250M+ Issuers Capital Requirements

According to The Block, New York's Department of Financial Services (NYDFS) formally introduced today stablecoin regulation "Authorized Payment Stablecoin Issuers" requiring reserves be distributed across custodians with single-custodian concentration caps. Issuers with $25 billion or more in outstanding stablecoins must hold at least 0.5% of reserves (capped at $500 million) in insured deposit institutions. Redemptions must complete within two business days; re-pledging and interest payments on reserves are prohibited. The rules align with the federal GENIUS Act's "substantially similar" certification standard and preserve New York's regulatory authority over issuers below $10 billion.

The NYDFS opened a 10-day pre-comment window followed by a 60-day formal comment period. Final rules will take effect alongside GENIUS Act implementation, with existing licensed issuers receiving one year to comply.