EU and New York Regulators Sign Deal to Share Stablecoin Data

• EBA and NYDFS signed an MoU to share stablecoin data and coordinate cross-border supervision.
• Regulators must notify each other promptly during cyberattacks and financial emergencies.
• Quarterly sharing covers reserve composition holder numbers and stablecoin circulation volume.

The European Banking Authority (EBA) and the New York State Department of Financial Services (NYDFS) have signed a formal cooperation agreement covering stablecoins that operate in both jurisdictions. 

The deal was signed on June 2 and creates a structured framework for the two regulators to share information, coordinate supervision, and respond together when problems arise.

In simple terms, if a stablecoin company is regulated in both Europe and New York, these two authorities will now talk to each other regularly rather than operating independently.

Why This Matters

Stablecoins do not respect borders. A company issuing a dollar-backed token can have users in New York, Paris, Berlin, and Singapore simultaneously. Until now, the regulator in New York and the regulator in Europe each supervised their piece of the puzzle without a formal channel to share what they were seeing.

This agreement changes that, and the things the two regulators have agreed to share include:

• How much stablecoin is in circulation, and how many holders exist in each jurisdiction
• The composition and health of reserve assets backing the stablecoin
• Any suspected violations, fraud, or enforcement actions
• Results of audits and stress tests
• Plans to expand or change business models
• Emergency situations that could affect users in either jurisdiction

The Emergency Clause

One of the most practical parts of the agreement is the emergency coordination requirement. If a stablecoin issuer runs into serious financial or operational trouble, or suffers a major cyberattack, both regulators are required to notify each other promptly and work toward a coordinated response.

Given that a stablecoin failure in one jurisdiction could trigger immediate panic in another, this kind of real-time coordination is arguably the most important provision in the entire document.

What Changes for Stablecoin Companies

Any stablecoin issuer operating under both MiCA in the EU and BitLicense or banking regulation in New York should expect more coordinated scrutiny going forward. Information provided to one regulator is now more likely to be shared with the other. Enforcement actions in one jurisdiction will be communicated to the other. Quarterly data sharing will become routine.

The agreement covers issuers of asset-referenced tokens and electronic money tokens under MiCA, which are the EU’s two regulated stablecoin categories, alongside any stablecoin activities supervised by NYDFS.

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