The NY State Department of Financial Services, notorious for its strictness, claims to be the first regulator in the country to impose requirements of the type.
The New York State Department of Financial Services (DFS) on Wednesday released regulatory guidance for U.S. dollar-backed stablecoins issued by DFS-regulated entities. According to a DFS statement, it is the first regulator in the United States to impose such expectations on a stablecoin issuer.
The requirements in the guidance concern redeemability, reserves and attestation. They state that a stablecoin must be fully backed by reserves as of the end of every business day and the issuer must have a redemption policy approved in advance in writing by the DFS that gives the holder the right to redeem the stablecoin for U.S. dollars.
Furthermore, the issuer’s reserves must be segregated from its proprietary assets and consist of U.S. Treasury instruments or deposits at state or federally chartered institutions. The reserve must be subjected to monthly examination by a certified public accountant.
( Derek Andersen, Cointelegraph, 2022 )