The European Banking Authority and the New York State Department of Financial Services (NYDFS) have signed a memorandum of understanding to police cross-border stablecoin activities.
The EBA said on Tuesday that the deal is part of its duties under the Markets in Crypto-Assets (MiCA) Regulation and sets out principles and procedures for exchanging information and coordinating stablecoin supervisory activities, market trends, and risks between New York and the European Union.
NYDFS said the deal would “enhance the supervision of entities engaged in stablecoin activities, identify market trends and risks, and promote the integrity of the stablecoin market.”
Banks and major financial institutions in the US and Europe have tested using stablecoins for payments, spurred on by laws regulating the tokens in the US and EU. The global stablecoin market has grown to more than $319 billion as of Wednesday, according to DefiLlama.
Source: European Banking Authority
Some of the information the two watchdogs will share
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