The report highlights the application of the PFMIs to stablecoin arrangements.
Allowing algorithms to control the supply and demand of crypto was challenged by Terra Luna.
The guidance sets criteria for USD-backed stablecoins issued by DFS-regulated entities.
Acting Comptroller Hsu spoke about the recent volatility with stablecoins.
The bank said a regulated, transparent and fully backed stablecoin has great potential.
The digital asset manager invested in crashed stablecoin Luna from its own balance sheet.
Stablecoins lack shared standards and are not interoperable.
Circle and BlackRock will explore capital market applications for USDC.
UK government will consult on wider regulation of cryptoassets this year.