NYDFS Aligns Stablecoin Rules with GENIUS Act

The United States — New York State Department of Financial Services>>> (NYDFS) has proposed new stablecoin regulations to align its existing framework with the federal GENIUS Act. This proposal maintains previous standards for dollar-backed stablecoins, including 1:1 backing and independent audits, while introducing new requirements such as a cap on single custodian reserves and mandatory risk management programs. Acting Superintendent Caitlin>>> stated that these updates will ensure alignment with federal requirements while protecting consumers and fostering innovation. The GENIUS Act, signed by Donald Trump>>> in 2025, allows smaller stablecoin issuers to operate under state regulation if certified by the United States — United States Department of the Treasury>>> as substantially similar to federal standards. The NYDFS also recently signed a cooperation agreement with the European Union — European Banking Authority>>> and is coordinating with the Nigeria — Nigeria Deposit Insurance Corporation>>> on stablecoin rulemaking. The proposed regulation will undergo public comment periods before taking effect concurrently with the GENIUS Act on January 18, 2027, with a one-year transition for existing United States — New York-licensed issuers.