NY and EU regulators sign MOU on stablecoin oversight

Financial regulators in New York and the European Union have formalized a partnership to coordinate oversight of the stablecoin market. The New York State Department of Financial Services and the European Banking Authority signed a memorandum of understanding on June 2 to share supervisory information and collaborate on monitoring cross-border stablecoin activities.

The agreement establishes a framework for the exchange of data, including details on specific stablecoins in circulation, their total volume, the number of holders, and audit results. It also covers the regulatory standing of products and services. The pact is designed to strengthen supervision of entities operating in both jurisdictions, identify market trends and risks, and promote market integrity.

Officials said the cooperation is essential due to the borderless nature of digital assets. Acting NYDFS Superintendent Kaitlin Asrow stated that effective financial regulation depends on strong relationships between regulators and that international collaboration is crucial for the digital asset space. EBA Executive Director François-Louis Michaud described the agreement as a milestone for transatlantic cooperation on...