NYDFS Proposes Stablecoin Rules Requiring Insured Deposit Reserves for Large Issuers

The New York State Department of Financial Services (NYDFS) proposed stablecoin rules that would require issuers with at least $25 billion in outstanding stablecoins to hold at least 0.5% of reserves in insured deposits, capped at $500 million. According to NS3.AI, the proposal aims to align New York’s stablecoin framework with the federal GENIUS Act while keeping key requirements introduced in 2022. Under the proposal, the insured-deposit requirement would apply only to issuers meeting the $25 billion outstanding threshold, with the reserve allocation limited by the $500 million cap.