PANews reported on June 10 that the New York State Department of Financial Services (DFS) announced a proposed regulation on June 9 aimed at adjusting its framework for issuing dollar-denominated stablecoins under the federal GENIUS Act. The new regulation retains the DFS's existing requirements for dollar-denominated stablecoins, including reserves and redeemability, eligible reserve assets, and independent auditing, while adding new federal provisions, including: setting a maximum limit on the reserve assets held by a single custodian; requiring entities to establish risk management plans covering internal controls and information security; establishing an internal audit system; managing asset growth and returns; regulating insider and related-party transactions; and regulating service provider arrangements.

The proposed rules are now open for public comment for 10 days, followed by a 60-day comment period after publication in the state register. The final rules will take effect simultaneously with the GENIUS Act, and existing New York-licensed issuers will have a one-year transition period. Until then, DFS's stablecoin regulatory guidelines remain in effect.