New York’s preeminent crypto regulator has charted a transatlantic path toward comprehensive stablecoin rules, aligning regulatory efforts on Tuesday with the European Union.
The agreement reflects not only how stablecoins are making it easier for capital to flow across borders but also how they are blurring the edges between agencies in distinct jurisdictions—including how the regulators respond in the event of a crisis.
In the case of an emergency situation, such as the “serious operational or financial difficulties of supervised entities,” the NYDFS and EBA will attempt to flag issues to each other as quickly as possible, while coordinating responses in their respective backyards.
If something catches fire, that means the regulators are committed to preventing each other from being blindsided by issues originating from across the Atlantic. Upon request, authorities are committed toward sharing information regarding civil or criminal investigations.
“Today, virtually all stablecoins in circulation are denominated in dollars,” she noted at a conference in South Korea. “Other currencies [are] playing a negligible role.”
Notably, the agreement between the NYDFS and EBA isn’t legally binding. Still, in the name of protecting consumers and markets, NYDFS Acting Superintendent Kaitlin Asrow described international coordination as “essential for the digital asset space” in a statement.
