On June 2, NYDFS announced that it had signed a memorandum of understanding (MOU) with the European Banking Authority (EBA) to foster cross-border cooperation on stablecoin supervision, including the sharing of confidential and supervisory information. The MOU aims to strengthen oversight of entities engaged in stablecoin activities, monitor market trends and emerging risks, and support the integrity of the stablecoin market. The agreement pertains only to stablecoin-related activities of supervised entities and does not extend to other activities those entities may undertake.

Under the MOU, NYDFS and the EBA agreed to exchange information on topics including reserve asset composition, authorization modifications, risk analyses, compliance assessments, and planned expansion of activities. The agreement also establishes procedures for participation in on-site inspections and investigations in the other authority’s jurisdiction, as well as mechanisms for notifying each other of material infringements by supervised entities. The MOU is not legally binding and does not create rights or obligations for either authority or third parties. Information shared under the agreement must be used solely for supervisory purposes and kept confidential. The agreement operates for an unlimited period, with either authority able to withdraw upon providing 30 days’ written notice.