Bill > S03262

This bill establishes a comprehensive regulatory framework for creating and operating limited purpose trust companies (LPTCs) in New York, with a particular focus on digital assets and stablecoins. The bill requires LPTCs to obtain authorization from the state superintendent of financial services, meeting stringent requirements for corporate governance, including having at least three board members who undergo character and fitness reviews. Applicants must provide detailed business plans, financial projections, organizational charts, and undergo extensive background checks. LPTCs will be subject to strict operational guidelines, including policies to prevent fraud, comply with bank secrecy regulations, and maintain robust internal controls. The bill pays special attention to digital assets, creating detailed rules for issuing and managing stablecoins and asset-backed tokens, including requirements for maintaining reserves, conducting monthly and annual audits, and ensuring quick redemption of assets. LPTCs must obtain departmental approval before introducing new products or services, and they are prohibited from engaging in proprietary trading or market manipulation. The legislation also includes provisions to protect customer assets in case of bankruptcy or dissolution, ensuring that customer funds remain segregated from the trust company's assets. Notably, the bill allows for potential reciprocity with other states that have substantially equivalent regulatory frameworks for digital asset trust companies.

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https://www.nysenate.gov/legislation/bills/2025/S3262