New York State Department of Financial Services and European Banking Authority Sign MOU to Enable Cross-Border Collaboration on Stablecoin Activity

The New York State Department of Financial Services announced today that it has signed a memorandum of understanding (MOU) with the European Banking Authority to facilitate the exchange of supervisory and confidential information related to stablecoins.

"Effective financial regulation depends on strong relationships between regulators, and international collaboration is essential for the digital asset space," said Acting Superintendent Kaitlin Asrow. "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 Chair, François-Louis Michaud said, "This agreement marks an important milestone in strengthening transatlantic cooperation on stablecoin supervision and ensuring that cross-border activities are conducted to the highest standards. It reflects our commitment to building a strong, effective, and globally coordinated supervisory framework for crypto-assets." 

The MOU is intended to enhance the supervision of entities engaged in stablecoin activities, identify market trends and risks, and promote the integrity of the stablecoin market. This MOU relates only to the stablecoin-related activities of supervised entities, and not to other activities that supervised entities may undertake.

DFS is a globally recognized stablecoin regulator, supervising stablecoin issuance since 2018. Regulated entities that are approved to issue stablecoins in New York are subject to the Department's stablecoin supervisory framework, which includes strong reserve requirements, confidence in redeemability, transparency, and a prohibition on rehypothecation.

Read a copy of the signed MOU with European Banking Authority.

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