New York and the European Union to Collaborate on Stablecoin Oversight

The European Banking Authority (EBA) and the New York State Department of Financial Services (NYDFS) have signed a Memorandum of Understanding on regulating cross-border stablecoin activities. This agreement is implemented within the framework of the Markets in Crypto-Assets (MiCA) regulation and establishes procedures for information exchange and coordination of supervisory measures between New York and the European Union. Cointelegraph.com reports .

According to NYDFS representatives, this collaboration will strengthen oversight of entities engaged in stablecoin operations and help identify market trends and risks. Major banks and financial institutions in the US and Europe are piloting the use of stablecoins as payment instruments, driven by the adoption of digital asset regulations in both regions.

According to DefiLlama data, the global stablecoin market size exceeded $319 billion as of Wednesday. The two supervisory authorities will exchange information on the volume of stablecoins in circulation, the number of holders, external and internal audit results, and the legal status of products. Furthermore, the memorandum provides for a mechanism for joint action in crisis situations.

Currently, USD-pegged assets dominate the market, with Tether (USDT) and Circle (USDC) leading in market capitalization. Experts believe that due to new regulations and the macroeconomic environment, the stablecoin market is transitioning from a phase of rapid expansion to a period of consolidation.