State regulators diverge on stablecoin safe harbor as GENIUS Act deadline looms

US state banking regulators request safe harbors for state-licensed stablecoin issuers to continue operations under the GENIUS Act starting January 2027, but the New York Department of Financial Services opposes this, arguing the law already allows continued operations and expressing concern about leniency toward foreign stablecoins in Treasury rules. The Conference of State Bank Supervisors seeks multiple safe harbors to protect state-licensed issuers during the regulatory review and certification process, fearing issuers will shift to the federal pathway if protections are absent.

This Wire brief sits within Fusion42's coverage of Fintech, and 15 sources have reported it between 20 Oct 2026 and 24 Oct 2026.