Superintendent Harris said that New York State Department of Financial Services approved the first USD-backed stablecoins for issuance in New York in 2018. Since then, regulated entities must meet strict reserve requirements and perform routine attestations in order to ensure stability and protect the consumers.
The new guidance notably states that clear, conspicuous redemption strategies must be adopted by the issuer of the stablecoin. The stablecoin has to be fully backed by a reserve of assets and this reserve must be subject to an examination of management’s assertions at least once per month by an independent Certified Public Accountant (« CPA ») licensed in the United States and applying the attestation standards of the American Institute of Certified Public Accountants (« AICPA »).
The Reserve must consist of the following assets: U.S. Treasury Bills acquired by the Issuer three months or less from their respective maturities, Reverse repurchase agreements fully collateralized by U.S. Treasury bills, U.S. Treasury notes, and/or U.S. Treasury bonds on an overnight basis, subject to DFS-approved requirements concerning overcollateralization, and Deposit accounts at U.S. state or federally chartered depository institutions, subject to DFS-approved restrictions. DFS reserves the right to update and revise the Regulatory Guidance at any time. \[…]