The European Banking Authority (EBA) and the New York State Department of Financial Services (NYDFS) have signed a memorandum of understanding to jointly oversee the stablecoin market. The document, based on the EU’s MiCA regulation, aims to establish transatlantic communication and ensure the exchange of confidential data on issuers whose activities affect both the US and EU markets.

Under the memorandum, the agencies agreed to share information on licensing, issuance volumes, reserve composition, stress-test results and other supervisory data. A key provision is the automatic quarterly transfer of reports on reserve composition and beneficial ownership. The parties will also assist each other with on-site inspections and coordinate responses to crises and ICT system failures. The deal was underpinned by the EBA’s recognition that NYDFS’s professional-secrecy protections are fully equivalent to EU standards.

EBA Chair François-Louis Michaud described the signing as an important milestone towards a globally coordinated supervisory framework for crypto-assets. The agreement is strictly limited to stablecoin operations and does not extend to other business areas of supervised entities. The initiative comes amid a heated debate over US crypto regulation, during which JPMorgan CEO Jamie Dimon sharply criticised the US crypto market structure bill in the context of a dispute over stablecoin rewards.