NY A06266

Creates a new regulatory framework for limited purpose trust companies in New York, requiring superintendent approval, a minimum 3-member board of directors, and designation of key officers including president/CEO, secretary, and general counsel

Mandates fingerprint-based background checks through the Division of Criminal Justice Services for board members, senior management, and major shareholders (those owning 10% or more of capital stock)

Requires limited purpose trust companies to maintain $1 million minimum primary coverage through insurance, bond, or other surety, and submit 3-year financial projections with their applications

Establishes specific requirements for digital asset custody and stablecoin issuance, including 1:1 cash or cash equivalent backing for stablecoins, monthly CPA audits of reserves, and 2-business-day redemption windows for customers

Protects customer assets by ensuring funds, deposits, and assets held in custody remain customer property and cannot become part of the trust company's bankruptcy estate, with written policies required to track and return assets to proper owners