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NYDFS Proposes Stablecoin Rules Aligned With Federal GENIUS Act
NYDFS proposed stablecoin rules with reserve concentration limits and CEO certifications, aligning New York with the federal GENIUS Act. The move tightens oversight of issuers operating under the state's BitLicense framework.
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New York’s top financial regulator proposed a formal stablecoin rule on Wednesday, seeking to bring state law in line with the federal GENIUS Act passed last year. The proposal from the New York State Department of Financial Services introduces reserve concentration limits per custodian, monthly CEO and CFO certification, and a two-business-day maximum for redemption requests.
The rule targets issuers of dollar-pegged tokens that operate under the state’s existing BitLicense framework. NYDFS said the changes aim to reduce counterparty risk and improve transparency for holders. Custodians holding reserves would face caps on how much of a single issuer’s collateral they can hold, a measure designed to prevent concentration failures similar to those seen in past stablecoin runs.
Monthly certification by the CEO and CFO replaces the current quarterly requirement. The faster certification window means executives must attest to reserve adequacy and compliance more frequently. NYDFS said the shorter cycle allows it to spot discrepancies before they compound.
Redemption rules tighten as well. Issuers must process customer requests within two business days, down from the five-day window allowed under some existing state guidance. The change reflects the GENIUS Act’s emphasis on rapid redemption as a consumer protection tool.