On 9 June 2026, DFS Acting Superintendent Kaitlin Asrow announced a proposed regulation governing payment stablecoin issuers licensed in New York. The rule is at the proposed stage. A 10-day preproposal comment period opened on 9 June 2026, followed by a 60-day public comment period upon publication in the State Register. The final regulation will take effect when the federal GENIUS Act becomes effective, with a one-year transition period for existing DFS-licensed stablecoin issuers.
The proposed regulation codifies and extends DFS's June 2022 Guidance on the Issuance of U.S. Dollar-Backed Stablecoins. It aligns the DFS regime with the federal GENIUS Act and with the U.S. Department of the Treasury's proposed requirements for state-level certification under GENIUS. Provisions retained from the 2022 guidance include 100% reserve backing and redeemability at par, permissible reserve asset categories, and mandatory independent third-party audits. New provisions impose a cap on reserves held at any single custodian and require issuers to adopt risk management programs covering internal controls, information security, internal audit systems, asset growth, earnings, insider and affiliate transactions, and service provider arrangements.
Payment stablecoin issuers holding a DFS BitLicense or a limited-purpose trust charter must review reserve custody concentrations and assess whether existing custodial arrangements comply with the incoming single-custodian cap. Every covered issuer must draft or update a risk management program before the GENIUS Act's effective date. Entities planning to seek DFS licensure should incorporate the proposed rule's requirements into their compliance timelines. Banks and trust companies holding stablecoin reserves on behalf of issuers should prepare for increased supervisory scrutiny on custodian concentration.
Existing DFS-licensed stablecoin issuers benefit from a one-year transition period from the GENIUS Act's effective date to reach full compliance. DFS's June 2022 Guidance on the Issuance of U.S. Dollar-Backed Stablecoins remains operative until the final regulation applies. The final text will depend on comments received during both comment periods and on the enacted text of the GENIUS Act, which had not been signed into law as of 9 June 2026.
Licentium advises digital asset issuers and virtual currency businesses on New York State licensing requirements and DFS supervisory expectations. We assist clients in assessing compliance gaps against the proposed stablecoin regulation and in drafting comment letters during the public comment period. Clients applying for a DFS BitLicense or limited-purpose trust charter can also engage us to prepare their applications. Work we undertake includes payment stablecoin licensing, GENIUS Act state certification analysis, DFS BitLicense preparation, virtual currency compliance program development, and reserve asset structuring advice.
Source: NYDFS, New Proposed Regulation: Payment Stablecoin Issuers, 9 June 2026