Stablecoin depeg fears push New York and EU regulators closer

New York’s financial regulator has signed a memorandum of understanding with the European Banking Authority to share supervisory and confidential information on stablecoin activity. The agreement covers market risks, consumer protection and oversight of firms involved in stablecoin operations.

The New York State Department of Financial Services said it has supervised stablecoin issuance since 2018 and that its framework includes reserve requirements, redeemability standards, transparency rules and a ban on rehypothecation. Those standards apply to companies it supervises, including firms approved to issue dollar-backed tokens in the state.

Acting DFS superintendent Kaitlin Asrow said effective financial regulation depends on strong ties between regulators and that international cooperation is important because stablecoins operate across borders.

United States, New York

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