Bill > A06266

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 financial services. The bill requires potential LPTCs to submit detailed applications to the superintendent of financial services, including extensive information about their board of directors, management, business plans, and financial projections. Applicants must undergo rigorous vetting, including criminal background checks and financial reviews of key personnel. The legislation sets specific requirements for LPTCs, including maintaining digital currency reserves, implementing robust internal controls, and establishing policies to prevent fraud and ensure customer protection. A significant portion of the bill is dedicated to regulating digital assets, particularly stablecoins and asset-backed tokens, specifying precise requirements for their creation, backing, and redemption. LPTCs must maintain strict compliance with Bank Secrecy Act regulations, provide monthly and annual audits of their asset reserves, and obtain departmental approval before introducing new products or services. The bill also establishes protections for customers, ensuring that their assets remain segregated and protected in the event of bankruptcy or dissolution of the trust company. Notably, the legislation creates a framework that allows for potential reciprocity with other states' regulatory systems and provides a clear path for digital asset companies to operate within a regulated environment.

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https://www.nysenate.gov/legislation/bills/2025/A6266