Financial regulators on both sides of the Atlantic are joining forces to bring transparency to the digital asset market. The New York State Department of Financial Services (NYDFS) and the European Banking Authority (EBA) have signed a Memorandum of Understanding (MoU).
The primary goal of this agreement is comprehensive cross-border supervision of the stablecoin market under the European MiCA framework. Stablecoin issuers whose operations bridge both the US and EU markets will now have to get used to heightened regulatory scrutiny.
What Will Regulators Share with Each Other?
The authorities have agreed to regularly exchange confidential information. Notably, certain data—such as reserve composition reports and corporate ownership structures—will be shared automatically every quarter, without the need for specific prior requests.
For convenience, the key data blocks targeted by the regulators are summarized in the table below:
| Data Category | What Exactly Will Regulators Share? |
| Legal Status | Information on licenses granted and official registration denials. |
| Operational Metrics | Issuance volumes and the exact number of asset holders. |
| Financial Stability | Reserve asset composition, liquidity management mechanisms, stress test outcomes, and independent audit results. |
| Law Enforcement | Details on ongoing investigations and already imposed sanctions. |
On-Site Inspections and Crisis Management
The signed memorandum is more than just a declaration of intent; it is a highly practical tool. Beyond exchanging raw numbers, the agencies have agreed on real “boots-on-the-ground” cooperation:
- Mutual assistance during on-site inspections and issuer audits;
- Synchronized actions in the event of market crises;
- Rapid coordination during major disruptions in ICT (Information and Communication Technology) systems.
What the Officials Are Saying
Agency heads make no secret of the fact that this move is driven by global shifts in the industry.
“The agreement marks an important milestone in strengthening transatlantic cooperation. It reflects our commitment to establishing a globally coordinated supervisory framework for crypto-assets,” emphasized EBA Chairman François-Louis Michaud.
NYDFS Acting Superintendent Caitlin Asrow added that international cooperation is the only viable way to protect consumers while simultaneously greenlighting “responsible innovation.”
Key Nuances and Fine Print
Before putting pen to paper, the European side thoroughly vetted their American counterparts. The EBA explicitly emphasized that the professional secrecy regime at the NYDFS has been recognized as fully equivalent to the strict standards of the European Union.
However, the pact has strict boundaries: it applies exclusively to stablecoin operations. Other business lines of the supervised fintech companies will remain outside the scope of this memorandum and will not be placed under the microscope of European officials.
The Context
While officials are building bridges, big business continues to argue over the rules of the game. For instance, in May, JPMorgan CEO Jamie Dimon harshly criticized a US crypto market structure bill, pointing out that issues surrounding stablecoin rewards still trigger plenty of disagreement. Nevertheless, regulators have made it clear: they will oversee stablecoins together, regardless of the mood on Wall Street.
