New York wants to add a GENIUS Act restriction on big tech stablecoin issuers into its own rulebook.
The GENIUS Act became the first United States federal law regulating stablecoin payments when it was signed in July 2025
It sets reserve, disclosure, and licensing rules for who can issue dollar-backed digital tokens. Now, the New York State Department of Financial Services proposed new regulations on June 9 that would align the state’s stablecoin regime with the federal framework. Among them is a rule that draws a line between stablecoins and big tech firms.
What the restriction says As per the GENIUS Act, a public company that is not predominantly engaged in financial activities, along with its subsidiaries and affiliates, cannot apply to issue a payment stablecoin. But the restriction is not absolute. Such a company can still issue if it secures a unanimous vote from the federal Stablecoin Certification Review Committee, made up of the Treasury Secretary, the Federal Reserve chair, and the head of the Federal Deposit Insurance Corporation.