DFS's new proposal has brought out the limits on reserve asset custody concentration and comprehensive risk management plans again. The compliance stablecoin threshold in New York is set to be raised again. Let's see how the market responds during the 10-day public consultation period.

CryptoWorld News reports that the New York State Department of Financial Services (DFS) has announced a new regulation proposal aimed at upgrading and adjusting the current New York State dollar stablecoin regulatory framework in accordance with the requirements of the Genius Act. The proposal retains New York State's previous strict requirements for compliant dollar stablecoins regarding asset backing, convertibility, permitted reserve asset types, and independent audits, while introducing new federal provisions, including restrictions on the maximum proportion of reserve assets that can be held in a single custodian and mandating that issuing entities establish comprehensive risk management plans covering internal controls, information security, internal audits, asset growth, related-party transactions, and service provider arrangements. The proposal is now open for a 10-day pre-proposal public comment period.