Circle's USDC Becomes First Stablecoin Under New EU Supervision
The designation shifts reserve and liquidity oversight to the EBA and places USDC under stricter prudential rules for significant e-money tokens.
- On Wednesday, the European Banking Authority classified Circle's USDC as the European Union's first 'significant' e-money token under the Markets in Crypto-Assets Regulation , subjecting it to direct EBA supervision beginning November 12.
- Of the 45 notified e-money tokens currently registered under MiCA, USDC is the first to receive the significance designation, which assesses transaction activity, token value, and user volume across the EU market.
- Under MiCA's 'dual supervision' framework, the EBA will take charge of USDC issuer's capital requirements, asset reserves, liquidity rules, and recovery plans, while France's Autorité de Contrôle Prudentiel et de Résolution retains oversight of corporate governance.
- Circle previously argued that mandatory reserve deposits rising from 30% to 60% for significant tokens 'increases exposure to the credit and counterparty risk of the banking sector,' citing approximately $3.3 billion in inaccessible USDC reserves during the 2023 Silicon Valley Bank collapse.
- Alongside the classification, the EBA confirmed a memorandum of understanding with the New York State Department of Financial Services to support cooperation on cross-border stablecoin activities, addressing supervisory challenges identified by international regulators.
46 Articles
46 Articles
EU authority classifies Circle’s USDC as ‘significant’ under MiCA
The second-largest stablecoin by market cap will be overseen by French and EU authorities under its classification as a “significant e-money token.“ The European Banking Authority (EBA) has classified Circle’s USDC stablecoin as a significant e-money token under the region’s Markets in Crypto Assets (MiCA) framework. In a Wednesday notice, the banking regulator said the […]
EBA Designates Circle’s USDC as Europe’s First ‘Significant’ MiCA EMT, Bringing Dual Supervision From Nov. 12
The classification of USDC as a significant e-money token (EMT) by the European Banking Authority (EBA) is a shift in supervisory architecture rather than a change in the product itself. On 14 October 2026, the EBA classified USDC as a significant EMT, marking the first time this designation has been applied under the Markets in […]
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