New York’s financial regulator, the New York State Department of Financial Services (NYDFS/DFS), proposes new stablecoin regulation intended to align the state’s existing stablecoin framework with upcoming federal requirements under the GENIUS Act. DFS said the proposed changes would add provisions designed to match how state frameworks could be certified under the act, including consistency with proposed requirements from the U.S. Treasury Department. The proposal also includes additional safeguards focused on reserve management. According to reporting, the draft rule would introduce limits on how concentrated stablecoin reserves can be, capping reserve concentration in certain areas. It would also require stablecoin issuers to implement risk management programs, outlining expected controls and oversight for managing risks associated with the tokens and their backing reserves. The proposed regulation is presented as an effort to reduce discrepancies between state and federal approaches and to bring New York’s rules into closer alignment with the framework the federal government is developing for certification of state stablecoin regimes.