The European Banking Authority (EBA) and the New York State Department of Financial Services (NYDFS) signed a memorandum of understanding on Tuesday to coordinate supervision of firms running stablecoin activities across the European Union and New York State, formalizing transatlantic cooperation as cross-border stablecoin markets expand.
The agreement sets out principles and procedures for exchanging supervisory information and coordinating oversight of stablecoins issued in both jurisdictions, including entities the EBA supervises directly under the Markets in Crypto-Assets Regulation (MiCA). It also creates a framework for mutual assistance and for timely coordination in crisis or emergency situations. The MoU applies only to the stablecoin-related activities of supervised entities, not to any other business they undertake.
The two regulators acted as the stablecoin market continued to climb, with total capitalization growing by $77.4 billion over the past year to $319 billion at the time of reporting. Much of that expansion followed the GENIUS Act, the US federal framework signed in 2025 that set 1:1 reserve and monthly disclosure standards for dollar-backed issuers and pulled institutional money into regulated tokens.
EBA Chair François-Louis Michaud described this, saying:
“[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. It reflects our commitment to building a strong, effective, and globally coordinated supervisory framework for crypto-assets.”
NYDFS Oversight Anchors the New York Side
The NYDFS has supervised stablecoin issuance since 2018, placing it among the longest-standing regulators in the sector. 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 said.“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.”
