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Stablecoin depeg fears push New York and EU regulators closer

New York’s financial regulator and the European Banking Authority have agreed to work together to oversee stablecoins, as both regions increase their monitoring of digital assets.

Summary

  • NYDFS and the European Banking Authority signed an agreement to share information on stablecoin supervision.
  • The agreement covers market risks, consumer protection, and oversight of firms involved in stablecoin activity.
  • DFS said its stablecoin framework includes reserve rules, redemption standards, transparency, and limits on rehypothecation.

New York’s financial regulator announced Tuesday that it will work with the European Banking Authority to share sensitive information about companies involved with stablecoins.

NYDFS and EBA expand stablecoin oversight

This agreement will allow the two regulators to exchange information about companies working with stablecoins, potential market risks, and any supervisory issues. According to the DFS, this collaboration aims to improve monitoring, safeguard consumers, and maintain a healthy market, as stablecoins are increasingly being watched by financial authorities.

Kaitlin Asrow, the temporary head of the Department of Financial Services, explained that good financial oversight relies on close collaboration between regulators. She also emphasized that working with international partners is crucial for digital currencies like stablecoins, as they often involve transactions across different countries and markets.

François-Louis Michaud, head of the EBA, called the agreement a significant step forward for cooperation between Europe and the US in overseeing stablecoins. He explained that this deal helps create a unified approach to regulating crypto-assets and ensures strong standards for international operations.

New York’s Department of Financial Services (DFS) has been overseeing the creation of stablecoins since 2018, specifically for companies authorized to issue them within the state. Their rules require these companies to maintain sufficient reserves, allow easy redemption of stablecoins, be transparent about their operations, and prevent the re-use of customer funds.

New York’s financial regulator has been a key player in overseeing the crypto industry in the U.S., particularly through its BitLicense requirements and rules for digital asset companies. When it comes to stablecoins, the regulator’s standards apply to companies it oversees, including those authorized to issue stablecoins backed by U.S. dollars in New York.

While this agreement isn’t legally enforceable, the Department of Financial Services stated it creates a way for regulators to work together when problems come up. The department also explained that the agreement will help track what’s happening with stablecoins and spot any possible dangers.

CFOs still cite compliance concerns

This agreement follows PYMNTS’ recent findings that while financial leaders are talking about digital assets, most companies aren’t actually using them in their everyday financial processes.

In my analysis of recent PYMNTS data, a significant concern for CFOs regarding the adoption of crypto for business payments is regulatory uncertainty – 77% specifically cited this as a major obstacle. Interestingly, a similar hesitation exists around stablecoins, with 67% of CFOs expressing the same concerns about regulation and compliance.

A recent report by PYMNTS revealed that most companies aren’t exploring digital currencies. Specifically, 58% of CFOs said they haven’t even discussed using stablecoins, and 70% haven’t considered cryptocurrencies. Currently, 13% of companies are using stablecoins, while only 5% are using cryptocurrencies.

Isabel Schnabel, a member of the European Central Bank’s governing board, recently cautioned that stablecoins still pose potential risks and could challenge Europe’s control over its currency.

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2026-06-02 23:18