The European Banking Authority (EBA) and the New York State Department of Financial Services (NYDFS) have signed a memorandum of understanding to coordinate supervision of stablecoin activities spanning the European Union and New York State. The agreement formalizes transatlantic regulatory cooperation at a time when stablecoin markets are becoming increasingly cross-border in both issuance and use.
Under the MoU, the two regulators will exchange supervisory information, coordinate oversight of stablecoins issued in both jurisdictions, and provide mutual assistance when needed. The framework also sets procedures for timely coordination during crisis or emergency situations. Its scope is limited specifically to stablecoin-related activities of supervised entities, rather than their broader lines of business.
Market Growth Adds Urgency to Coordination
The initiative comes as the stablecoin sector continues to scale rapidly. According to the report, total market capitalization has risen by $77.4 billion over the past year to reach $319 billion. A major driver of that expansion has been the US GENIUS Act, signed in 2025, which introduced 1:1 reserve requirements and monthly disclosure standards for dollar-backed issuers, helping attract more institutional participation into regulated stablecoins.
EBA Chair François-Louis Michaud described the agreement as an important milestone for transatlantic cooperation on stablecoin supervision. He said it reflects a broader commitment to building a strong, effective, and globally coordinated supervisory framework for crypto-assets.
NYDFS Brings an Established Stablecoin Rulebook
On the New York side, NYDFS has supervised stablecoin issuance since 2018, making it one of the longest-standing regulators in the sector. Its framework centers on reserve standards, redeemability, transparency, and a ban on rehypothecation. Ripple’s RLUSD stablecoin was approved under this regime and is backed by deposits, short-term US Treasuries, and cash equivalents.
Acting Superintendent Kaitlin Asrow said effective financial regulation depends on strong relationships among regulators, especially in digital assets. She added that the MoU reflects the department’s commitment to cross-border supervision and collaboration aimed at protecting consumers and markets while supporting responsible innovation.
MiCA Provides the Legal Foundation in Europe
Within the EU, MiCA gives the EBA direct supervisory authority over issuers of significant asset-referenced tokens and electronic money tokens. The regulation also allows the agency to enter administrative agreements on information exchange with authorities outside the bloc, provided their confidentiality and professional secrecy standards are considered equivalent. The EBA determined that the NYDFS framework meets that threshold, enabling the agreement to move forward.
The signing comes amid broader regulatory and corporate activity around dollar stablecoins. The report notes that JPMorgan recently froze bank accounts linked to two venture-backed stablecoin startups over exposure to sanctioned jurisdictions, while still banking other issuers. The bank has also moved closer to its own token initiative through a trademark filing for JPMD. Together, these developments suggest that stricter oversight and deeper institutional involvement are advancing in parallel across the stablecoin market.