European and American regulators are beginning to share intelligence; stablecoin players will have to deal with both sides moving forward.

The New York State Department of Financial Services (NYDFS) and the European Banking Authority (EBA) signed a 22-page Memorandum of Understanding, under which both parties will share supervisory information and confidential data related to stablecoin regulation, including market risks, operational or financial crises, as well as civil and criminal investigation information. According to the agreement, if a regulated institution experiences serious operational or financial issues, both parties will promptly notify each other and coordinate response measures. The agreement is not legally binding and applies to institutions within the NYDFS's regulatory scope. This cooperation comes at a time when European regulators are increasingly focused on the de-pegging risks of stablecoins and their impact on financial stability. (Decrypt)