The European Banking Authority and the New York State Department of Financial Services signed a memorandum of understanding on Tuesday to coordinate supervision of stablecoin activities across the European Union and New York State. The agreement establishes procedures for exchanging supervisory information and coordinating oversight of stablecoins issued in both jurisdictions, including entities the EBA supervises under the Markets in Crypto-Assets Regulation. The two regulators acted as the stablecoin market grew by $77.4 billion over the past year to $319 billion at the time of reporting, with expansion following the GENIUS Act signed in 2025 that set reserve and disclosure standards for dollar-backed issuers.
The memorandum creates a framework for mutual assistance and timely coordination in crisis or emergency situations. It applies only to the stablecoin-related activities of supervised entities, not to any other business they undertake. EBA Chair François-Louis Michaud stated the agreement "marks an important milestone in strengthening transatlantic cooperation on stablecoin supervision and ensuring that cross-border activities are conducted to the highest standards."
NYDFS Supervised Stablecoin Issuance Since 2018
The NYDFS has supervised stablecoin issuance since 2018. Entities approved to issue stablecoins in New York operate under a framework built around reserve requirements, redeemability, transparency, and a prohibition on rehypothecation. The Department approved Ripple's RLUSD stablecoin under that regime, a dollar-pegged token backed by deposits, short-term Treasuries, and cash equivalents.
Acting Superintendent Kaitlin Asrow said the agreement extends that record across borders. "Effective financial regulation depends on strong relationships between regulators, and international collaboration is essential for the digital asset space," she stated. "This MOU reflects the Department's deep commitment to cross-border supervision and collaboration in order to protect consumers and markets and enable responsible innovation."
EBA Holds Direct Supervisory Authority Under MiCA
Under MiCA, the EBA holds direct supervisory responsibility over issuers of significant asset-referenced tokens and electronic money tokens. The regulation allows the authority to conclude administrative agreements on information exchange with supervisory authorities outside the EU. Disclosure of confidential information depends on a finding that the third-country authority's confidentiality and professional secrecy regime matches MiCA. The EBA assessed the NYDFS regime as equivalent.
JPMorgan Froze Stablecoin Startup Accounts Over Sanctions Exposure
The signing occurred amid supervisory and corporate activity around dollar stablecoins. JPMorgan froze bank accounts tied to two venture-backed stablecoin startups over exposure to sanctioned jurisdictions, while continuing to bank stablecoin issuers. The bank moved toward its own token with a trademark filing for JPMD.
FAQ
What did the EBA and NYDFS agree to on Tuesday?
The European Banking Authority and the New York State Department of Financial Services signed a memorandum of understanding on Tuesday to coordinate supervision of stablecoin activities across the European Union and New York State, establishing procedures for exchanging supervisory information and coordinating oversight.
Why did the EBA and NYDFS sign this stablecoin oversight agreement?
The two regulators acted as the stablecoin market grew by $77.4 billion over the past year to $319 billion at the time of reporting, formalizing cooperation as cross-border stablecoin markets expanded following the GENIUS Act signed in 2025.
What authority does the EBA have over stablecoin issuers?
Under the Markets in Crypto-Assets Regulation, the EBA holds direct supervisory responsibility over issuers of significant asset-referenced tokens and electronic money tokens, and the regulation allows the authority to conclude administrative agreements on information exchange with supervisory authorities outside the EU.
