The New York Department of Financial Services and the European Banking Authority are collaborating to regulate stablecoins.

CoinFeed reported on June 3 that, according to Decrypt, the New York Department of Financial Services (NYDFS) and the European Banking Authority (EBRA) have reached a cooperation agreement to jointly regulate stablecoins. In a 22-page memorandum of understanding, the two parties detailed procedures aimed at facilitating the exchange of regulatory and confidential information related to the $314 billion stablecoin industry. The NYDFS stated that this move aims to strengthen oversight, identify market trends and risks, and promote market integrity. In emergency situations, such as serious operational or financial difficulties experienced by regulated entities, both parties will promptly notify each other of the issues and coordinate responses, and share information related to civil or criminal investigations upon request. This coordination comes at a time when EBRA officials are cautious about stablecoins, warning of the risk of runs and the potential erosion of European monetary sovereignty and economic control.