TL;DR:
- The European Banking Authority and the NYDFS signed an agreement to coordinate stablecoin oversight at the cross-border level.
- Both regulators will share data on circulating volume, number of holders, audits and the regulatory status of each product.
- The global stablecoin market exceeds $319 billion and is going through a consolidation phase after years of rapid expansion.
The European Banking Authority (EBA) and the New York State Department of Financial Services (NYDFS) signed a memorandum of understanding to coordinate the supervision of stablecoin activities on both sides of the Atlantic. The agreement, driven by the EBA’s obligations under the Markets in Crypto-Assets (MiCA) regulatory framework, establishes procedures for the exchange of information, the identification of market trends and the management of shared risks.
Among the data both agencies will share are the total circulating volume, the number of holders, the results of internal and external audits, and the regulatory status of specific products and services. The memorandum also includes coordination mechanisms for crisis or emergency situations. Only activities linked to stablecoins of supervised entities will fall under scrutiny, not the entirety of operations a company may carry out.
The Reach of the State Expands
The stablecoin market exceeds $319 billion as of today, according to DefiLlama data. Those denominated in US dollars represent the largest share of activity: USDT from Tether and USDC from Circle lead by market capitalization. At the same time, both US legislation —signed into law by President Donald Trump in July— and the European MiCA framework, in force since late 2024, accelerated the adoption of stablecoins in banks and financial institutions for cross-border payments.
However, the sector is showing signs of cooling. Jimmy Xue, co-founder of the quantitative yield protocol Axis, noted in January that the market entered a consolidation phase following rapid expansion. New regulations, liquidity constraints and higher real yields on traditional instruments weigh on the issuance of new tokens. A cautious macroeconomic environment and competitive Treasury bond yields have further reduced appetite for expansion.
The Underlying Stakes of Stablecoin Control
What this memorandum represents, beyond the technical language and institutional declarations, is the construction of a coordinated surveillance network over the finances of individuals and companies operating in decentralized ecosystems. Two of the world’s most powerful financial regulators joining forces to monitor every stablecoin issued, every holder and every available audit is not a consumer protection measure: it is the consolidation of a control apparatus advancing over financial privacy under the guise of systemic stability.
