- EBA names USDC the EU’s first significant e-money token under MiCA.
- Supervision of reserves and liquidity shifts to the EBA on November 12.
- France’s ACPR keeps oversight of governance, outsourcing, and conflicts of interest.
The European Banking Authority (EBA) has classified USDC, the dollar-linked stablecoin issued by Circle, as the European Union’s first significant e-money token under the Markets in Crypto-Assets Regulation (MiCA). The EBA announced the decision on October 14, and it takes effect on November 12.
The move places the world’s second-largest stablecoin under closer EU supervision of its reserves and liquidity.
EBA Names USDC First Significant E-Money Token
In an official statement published October 14, the EBA said USDC, issued in the EU by Circle Internet Financial Europe SAS, was the first to receive the designation among 45 e-money tokens notified under MiCA.
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From November 12, supervision of key financial safeguards will be shared between the EBA and France’s Autorité de Contrôle Prudentiel et de Résolution (ACPR).
The EBA will assume direct responsibility for the issuer’s own funds, asset reserves, liquidity requirements, and recovery and redemption plans. The ACPR will retain oversight of corporate governance, qualifying holdings, fitness and propriety assessments, outsourcing, and conflicts of interest.
The two authorities said they will work together to ensure a smooth transition. The EBA also announced a memorandum of understanding with the New York State Department of Financial Services to support cooperation and information-sharing on cross-border stablecoin activities.
What the Significant Status Means for Stablecoin Oversight
MiCA gives the EBA responsibility for assessing whether e-money tokens meet the criteria for significant status. The designation brings additional supervisory oversight rather than an outright ban or a change to the token’s stated purpose.
The EBA did not announce any change to USDC’s dollar peg. The immediate development is regulatory: a transfer and sharing of supervisory responsibilities scheduled for November 12.
Why This Matters
The decision places USDC under a more direct European supervisory structure for reserves and liquidity, areas central to how stablecoins function. It also marks a regulatory milestone as European authorities expand oversight of digital financial assets.
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