{"id":29351,"date":"2022-06-08T16:57:29","date_gmt":"2022-06-08T20:57:29","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=29351"},"modified":"2022-06-08T16:57:37","modified_gmt":"2022-06-08T20:57:37","slug":"new-york-state-dfs-releases-guidance-for-issuing-dollar-backed-stablecoins","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/new-york-state-dfs-releases-guidance-for-issuing-dollar-backed-stablecoins\/","title":{"rendered":"New York State DFS releases guidance for issuing dollar-backed stablecoins"},"content":{"rendered":"\n
The New York State Department of Financial Services (DFS) announced regulatory guidance for DFS-regulated firms issuing US dollar-backed stablecoins. <\/a><\/h5>\n\n\n\n
\"New
New York State DFS releases guidance for issuing dollar-backed stablecoins<\/figcaption><\/figure>\n\n\n\n

According to a statement from the Department of Financial Services, it is the first authority in the United States to place such demands on a stablecoin issuer.<\/p>\n\n\n\n

The guidance specifies requirements for redeemability, reserves, and attestation. They stipulate that a stablecoin must be completely backed by reserves at the end of each business day and that the issuer must have a DFS-approved redemption mechanism\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a> that allows the holder to redeem the stablecoin for US dollars.<\/p>\n\n\n\n

Furthermore, the issuer's reserves must be kept separate from its proprietary assets and made up of US Treasury instruments or deposits at the state or federally regulated banks. A qualified public accountant must examine the reserve on a monthly basis.<\/p>\n\n\n\n

Only issuers regulated by the DFS and limited purpose trust charter holders operating in the state are covered by the guidance.<\/p>\n\n\n\n

The Paxos Trust Company, which issues the Pax Dollar (USDP) and the Binance USD<\/a> (BUSD), the Gemini Trust Company, which issues the Gemini Dollar (GUSD), and the GMO-Z.com Trust Company, which issues the Zytara Dollar, are the current issuers (ZUSD). Other stablecoins that may be listed by DFS-regulated institutions are not covered by the guidance.<\/p>\n\n\n\n

The DFS license, known as the BitLicense in New York, is notoriously difficult to obtain and has been chastised by New York City Mayor Eric Adams.<\/p>\n\n\n\n

When it was first introduced in 2015, some crypto companies relocated out of the state. As part of a mission to “eliminate delays in regulatory processes and ensure operational excellence across the Virtual Currency business<\/a>,” the DFS plans to treble the size of its virtual currency team this year.<\/p>\n","protected":false},"excerpt":{"rendered":"

The New York State Department of Financial Services (DFS) announced regulatory guidance for DFS-regulated firms issuing US dollar-backed stablecoins. According to a statement from the Department of Financial Services, it is the first authority in the United States to place such demands on a stablecoin issuer. The guidance specifies requirements for redeemability, reserves, and attestation. […]<\/p>\n","protected":false},"author":12,"featured_media":29354,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[10446],"class_list":["post-29351","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-dfs"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2022\/06\/image-67.png","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/29351","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=29351"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/29351\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/29354"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=29351"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=29351"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=29351"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}