What did the New York Department of Financial Services and the European Banking Authority agree to do?

The New York Department of Financial Services (NYDFS) and the European Banking Authority (EBA) signed a memorandum of understanding to coordinate oversight of stablecoins. The agreement allows the regulators to share supervisory information, monitor risks and cooperate on enforcement matters involving supervised firms.

Why does the NYDFS-EBA stablecoin agreement matter?

The agreement is one of the clearest examples of cross-border cooperation on stablecoin regulation. As stablecoins are increasingly used for global payments and capital transfers, regulators want faster information sharing when risks emerge across jurisdictions.

What information will the NYDFS and EBA share?

The regulators said they will exchange supervisory and confidential information related to stablecoin issuers and other supervised entities. They also plan to share insights on civil investigations, criminal investigations and emerging market risks when appropriate.

How will the agreement help during a stablecoin crisis?

If a supervised company faces serious operational or financial difficulties, the NYDFS and EBA have agreed to notify each other quickly and coordinate responses. This could help regulators react faster to events such as a stablecoin depegging or liquidity crisis.

What is a stablecoin depeg?

A depeg occurs when a stablecoin trades below or above the value it is designed to track. The article cites Circle’s USDC, which briefly fell to around $0.87 in 2023 after concerns emerged about reserves linked to Silicon Valley Bank.

Why are European regulators concerned about stablecoins?

European Central Bank officials have warned that stablecoins can be vulnerable to bank-run-like events if users rush to redeem them simultaneously. They have also expressed concerns that widespread use of dollar-backed stablecoins could weaken Europe’s monetary sovereignty.

Why are dollar-backed stablecoins attracting attention from regulators?

Most of the world's stablecoin market is denominated in US dollars. European officials worry that growing dependence on dollar-based digital assets could reduce the influence of local currencies in payments and financial markets.

Is this agreement legally binding?

No. The memorandum of understanding is not legally binding. However, it establishes a framework for cooperation and information sharing between the two regulators, which could strengthen oversight of the stablecoin sector.

Image for illustrative purposes only. Not a real photo.

New York and EU join forces on stablecoins

Written by Liezl GambePublished Jun. 3 2026Last Updated Jun. 3 2026

New York’s top crypto regulator and the European Banking Authority have agreed to coordinate oversight of stablecoins, marking a significant step toward cross-border supervision of the fast-growing digital asset sector.

The New York Department of Financial Services and the EBA signed a 22-page memorandum of understanding outlining procedures for sharing supervisory and confidential information related to the $314 billion stablecoin market.

The agreement is designed to improve oversight, identify emerging risks and strengthen market integrity as stablecoins increasingly facilitate cross-border capital flows.

In the event of serious operational or financial difficulties involving supervised entities, the regulators agreed to alert one another as quickly as possible and coordinate responses within their respective jurisdictions.

The arrangement also includes cooperation on civil and criminal investigations involving supervised firms, allowing authorities to exchange relevant information when requested.

“International cooperation is essential for the digital asset space,”

Said NYDFS Acting Superintendent, Kaitlin Asrow.

The agreement comes as European Central Bank officials continue to raise concerns about stablecoin risks, with board member Isabel Schnabel recently warning that dollar-denominated stablecoins are vulnerable to runs and could undermine Europe’s monetary sovereignty, citing the 2023 depegging of Circle’s USDC following the collapse of Silicon Valley Bank.