NYDFS and EBA Sign $314 Billion Stablecoin Oversight Pact on Tuesday

On Tuesday, the New York Department of Financial Services and European Banking Authority signed a 22-page memorandum of understanding to coordinate oversight of the stablecoin sector. Under the agreement, the regulators will share supervisory information, promptly flag market disturbances, and coordinate responses to emergencies involving supervised entities. The pact reflects growing concerns over stablecoins' cross-border capital flows and regulatory gaps. European Central Bank board member Isabel Schnabel warned last week that stablecoins face "risk of runs," noting that virtually all stablecoins in circulation are dollar-denominated.
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