New York And EU Regulators Launch Joint Stablecoin Oversight Initiative

The European Banking Authority and the New York State Department of Financial Services have signed a memorandum of understanding to coordinate supervision of stablecoin activities. The agreement formalizes transatlantic cooperation as cross-border stablecoin markets continue to expand.

The MoU establishes principles for exchanging supervisory information and coordinating oversight of stablecoins issued in both jurisdictions. It includes a framework for mutual assistance and crisis coordination, applying solely to the stablecoin-related activities of supervised entities.

This regulatory move coincides with significant growth in the stablecoin market, which has seen its total capitalization rise by $77.4 billion over the past year to $319 billion. Market expansion has been partly driven by the U.S. GENIUS Act of 2025, which set reserve and disclosure standards for dollar-backed issuers.

EBA Chair François-Louis Michaud stated the agreement marks an important milestone in strengthening transatlantic cooperation and ensuring cross-border activities meet high standards. He said it reflects a commitment to building a globally coordinated supervisory framework for crypto-assets.

The NYDFS, overseeing stablecoins since 2018, operates a framework based on reserve requirements and transparency. The department recently approved Ripple's RLUSD stablecoin under this regime. Acting Superintendent Kaitlin Asrow emphasized that effective regulation depends on strong international collaboration in the digital asset space.

The EBA's legal authority stems from the Markets in Crypto-Assets Regulation, which permits such agreements with non-EU authorities following an assessment of equivalent confidentiality standards. The signing occurs amid heightened activity around dollar stablecoins, including recent supervisory actions by major banks.