NYDFS and European Banking Authority Sign Cross-Atlantic Stablecoin Supervision MoU

The New York State Department of Financial Services and the European Banking Authority signed a memorandum of understanding on Tuesday establishing the first formal supervisory information-sharing channel between the regulator that licenses the largest US dollar stablecoin issuers and the EU authority that supervises significant MiCA stablecoin issuers, the agencies said in coordinated announcements.

The 22-page agreement, signed by EBA Chair François-Louis Michaud on May 13 and NYDFS Acting Superintendent Kaitlin Asrow on April 27, commits the authorities to a quarterly exchange of reserve-of-assets data, qualifying-holding disclosures, group structures and per-jurisdiction stablecoin trading volumes without prior request, according to the text of the MoU. It also requires 45 days' notice before on-site inspections in the other's jurisdiction, with 30-day non-objection windows under normal circumstances and three working days in emergencies. The scope covers the largest issuers in dollar-denominated stablecoins.

"Effective financial regulation depends on strong relationships between regulators, and international collaboration is essential for the digital asset space," Asrow said in a statement issued by NYDFS. "This MoU reflects the Department's deep commitment to cross-border supervision and collaboration in order to protect consumers and markets and enable responsible innovation.”

What the Authorities Will Share Quarterly

Article 4 sets out a recurrent data-exchange schedule unusual in scope for a non-binding administrative arrangement. Without a prior request, the authorities will exchange information on the composition and maturities of issuers' reserve assets, the identities of holders of qualifying stakes of 10% or more in supervised issuers, group-structure changes, and the number and volume of stablecoins traded on crypto-asset exchanges in each jurisdiction.

Article 7 adds a redemption- and resolution-plan sharing mechanism: if a supervised entity activates a recovery, redemption or resolution plan, the originating authority must share it with the other "as soon as practicable." The MoU runs for an unlimited period and can be terminated on 30 days' notice.

Equivalence Finding and Onward-Sharing Reach

Article 126 of MiCA permits the EBA to conclude information-exchange agreements with third-country supervisors only where their confidentiality regimes are deemed equivalent. The MoU's preamble records that the EBA has formally assessed NYDFS's confidentiality and professional-secrecy framework under the New York Financial Services Law and Banking Law as equivalent to MiCA's.

That equivalence finding has downstream reach. Annex IV lists every EU national competent authority, plus the European Central Bank, the Single Resolution Board, ESMA, EIOPA and the Anti-Money Laundering Authority, as onward-sharing recipients of NYDFS-originated information. Annex III names the Federal Reserve Board of Governors, the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation as the corresponding US pool.

What's Not Locked In

Article 9 is explicit that the MoU is a "statement of intent" that "does not constitute a legally binding and/or legally enforceable agreement." It creates no third-party rights and does not override either authority's domestic discretion. European Central Bank Executive Board member Isabel Schnabel said at a conference in South Korea last week that stablecoins remain "subject to the risk of runs" and that "virtually all stablecoins in circulation are denominated in dollars," signaling that European policymakers still view dollar stablecoins as a monetary-sovereignty concern that information-sharing alone does not resolve.