The New York State Department of Financial Services has entered into a formal agreement with the European Banking Authority aimed at strengthening oversight of stablecoins. This collaboration reflects growing concerns about depegging events and the need for coordinated regulatory action across jurisdictions.
Under the newly signed memorandum of understanding, both agencies will exchange information regarding companies involved in stablecoin operations, market vulnerabilities, and supervisory matters. The goal is to enhance consumer protection and maintain market integrity in the rapidly evolving digital asset space.
Acting DFS Superintendent Kaitlin Asrow emphasized that cross-border cooperation is essential for effective regulation, given the global nature of stablecoin transactions. The agreement allows for real-time information sharing on potential risks and emerging trends.
François-Louis Michaud, Executive Director of the EBA, hailed the deal as a significant step toward building a unified supervisory framework for crypto-assets. He noted that such collaboration helps maintain high standards for activities that span multiple markets.
New York has been overseeing stablecoin issuance since 2018, with policies covering reserve requirements, redemption standards, transparency, and restrictions on rehypothecation. The DFS’s BitLicense regime has long been a cornerstone of U.S. crypto regulation.
Although the MOU is not legally binding, it provides a structured mechanism for cooperation when regulatory issues arise. The partnership also aims to identify systemic risks and market trends in the stablecoin sector.
Meanwhile, recent surveys indicate that compliance uncertainty remains a major hurdle for corporate adoption of digital assets. According to PYMNTS research, 77% of CFOs cited regulatory ambiguity as a barrier to using cryptocurrencies, and 67% said the same for stablecoins. Only 13% of firms currently use stablecoins, while 5% utilize cryptocurrencies.
European Central Bank board member Isabel Schnabel has also warned that stablecoins pose risks to monetary sovereignty in Europe, highlighting the urgency of coordinated oversight.