NY S03262

Creates a new regulatory framework for limited purpose trust companies in New York, requiring superintendent approval, a minimum 3-member board of directors, fingerprint-based criminal background checks for directors and senior management, and $1 million in primary coverage

Mandates limited purpose trust companies submit detailed business plans with 3-year financial projections, undergo character and fitness reviews for key personnel, and identify all major shareholders (those owning 10% or more of capital stock)

Establishes specific requirements for digital asset custody and stablecoin issuance, requiring stablecoins to maintain a 1:1 ratio of cash or cash equivalents (U.S. Treasury bills, reverse repurchase agreements, money-market funds, or deposit accounts) and monthly CPA audits of reserves

Requires new products, services, or businesses to receive superintendent approval within 180 days of application, with automatic approval if no decision is made within that timeframe

Protects customer assets by declaring that funds, deposits, and assets held in custody remain customer property and cannot become part of the trust company's estate in bankruptcy or dissolution proceedings