The New York Department of Financial Services (DFS) has released guidance outlining compliance requirements for dollar-pegged stablecoins.
The published guidance is based on the unofficial policies used by DFS since 2018. The guidance includes essential requirements for any stablecoin issuer and any future regulated firm currently subject to DFS oversight. According to Adrienne Harris, the state’s Financial Services Superintendent, the guide “sets out clear criteria for companies looking to issue USD-backed stablecoins in New York.”
The manual has three main components. First, any DFS-issued stablecoin must be fully backed by an asset reserve. Issuers must establish clear policies for converting tokens to US dollars and comply with two-day redemption requests in exceptional circumstances.
According to the guide, companies issuing dollar-backed stablecoins will also need to separate their reserve assets from proprietary assets and hold those reserves in certain asset categories, such as US treasury bills and dollars.
Stablecoins will also need to be audited by an independent certified public accountant, who will verify management’s claims monthly and annually.
The guide further emphasizes that meeting these requirements does not guarantee absolute compliance.
New York’s new stablecoin policy came after the collapse of TerraUSD.
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