NY financial regulator unveils stablecoin rules aligned with GENIUS Act

The New York Department of Financial Services (NYDFS) has released official proposed regulations for stablecoins aligned with the GENIUS Act, The Block reported. The framework maintains existing guidance, including requirements for one-to-one U.S. dollar backing, redemption standards, permissible reserve assets, and independent audits. However, it also strengthens investor protections with new provisions such as limits on reserve concentration with a single custodian, a dual authentication system, and mandatory insured deposits for large issuers with over $25 billion in assets. The proposed rules will undergo a 60-day public comment period before being formally implemented.