New York’s Department of Financial Services (NYDFS) and the European Banking Authority (EBA) signed a memorandum of understanding (MOU) on Tuesday, establishing a framework for sharing supervisory information on stablecoins. The 22-page, non-binding agreement commits both regulators to promptly exchange details on market trends, risks, and oversight of entities engaged in the $314 billion stablecoin sector. It also covers coordination during emergencies, such as operational or financial difficulties of supervised firms, and flags civil or criminal investigations upon request.
The NYDFS described the pact as essential for protecting consumers and market integrity, noting its stablecoin standards—including reserve requirements, redeemability rules, transparency, and a ban on rehypothecation—have been in place since 2018 under the state's BitLicense regime. EBA Executive Director François-Louis Michaud called the deal a milestone for transatlantic cooperation on crypto-asset supervision.
The move comes amid heightened regulatory focus. European Central Bank board member Isabel Schnabel recently warned stablecoins are "subject to the risk of runs" and threaten monetary sovereignty, with most pegged to the U.S. dollar. The NYDFS cited the 2023 USDC depeg triggered by Silicon Valley Bank’s collapse as an example of the crises the agreement aims to mitigate. Meanwhile, PYMNTS research shows that 77% of CFOs still cite regulatory uncertainty as a barrier to using stablecoins in corporate payments, underscoring the practical impact of such supervisory misalignment.
