NYDFS Proposes Stablecoin Issuer Rules With 2 Day Redemption Standard and $25B Reserve Buffer

New York's Department of Financial Services proposed rules for authorized payment stablecoin issuers, adding custodian concentration limits, a 0.5 percent reserve buffer for issuers above $25 billion, a two business day redemption requirement, and bans on repledging reserves and paying interest. A 10 day precomment period and 60 day comment period are open.