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The European Banking Authority has named Circle’s USDC the first significant e-money token under MiCA, giving the EU’s banking watchdog direct oversight of its reserves, liquidity and redemption plans from November 12.
France’s ACPR keeps supervision of governance, ownership and management. USDC is the first token to get the label among 45 e-money tokens notified under the framework.
Under the new arrangement, the EBA will assume direct supervisory responsibility for several financial aspects of USDC’s European operations. These include the issuer’s own-funds requirements, reserve assets, liquidity safeguards, and recovery and redemption plans.
The change is scheduled to take effect on November 12, 2026. France’s Autorité de Contrôle Prudentiel et de Résolution (ACPR), which has overseen Circle’s European operations, will continue supervising corporate governance, qualifying ownership interests, management suitability, outsourcing arrangements and conflicts of interest.
The USDC MiCA classification follows the significance criteria established by MiCA. These criteria consider factors related to an e-money token’s size, usage and activity. Under the framework, a token must meet at least three specified criteria to qualify as significant.
The EBA has not publicly identified which individual criteria USDC met in its latest assessment. Therefore, the announcement establishes its regulatory status without providing a complete breakdown of the underlying measurements.
The EBA’s responsibilities will focus on the financial safeguards underpinning USDC, while France’s regulator continues to supervise other areas of Circle’s business.
Circle’s latest regulatory milestone builds on its initial authorization to issue USDC and EURC in the European Union.
On July 1, 2024, Circle announced that its French subsidiary had obtained an Electronic Money Institution (EMI) licence from the ACPR, allowing it to issue the two stablecoins in compliance with the EU’s new crypto-asset rules.
The company described the authorization as a significant step toward integrating regulated stablecoins into financial services.
The 2024 licence established the legal basis for Circle’s European issuance operations. The 2026 decision adds a higher level of direct supervision because USDC has now been designated a significant e-money token.
Circle has also raised concerns about certain MiCA requirements. In October 2026, the company called on EU policymakers to reconsider rules requiring stablecoin issuers to maintain portions of their reserves as deposits with commercial banks.
Under the existing framework, the minimum is generally 30% for ordinary e-money tokens and rises to 60% for significant tokens.
The company has argued that fixed bank-deposit requirements can expose issuers to risks associated with their banking partners. Its position draws partly on the March 2023 Silicon Valley Bank collapse, when $3.3 billion of USDC reserves were temporarily caught up at the failed lender.
These policy disagreements show that meeting regulatory requirements does not mean an issuer agrees with every aspect of the rules governing its operations.
The EBA’s announcement also highlighted cooperation with the New York State Department of Financial Services (NYDFS). The two authorities signed a memorandum of understanding covering information exchange and supervisory cooperation relating to cross-border stablecoin activities.
The agreement is relevant because stablecoins operate across national boundaries, while their issuers may be subject to different legal and supervisory regimes. USDC, for example, is issued through Circle’s European subsidiary and its US entity, bringing its operations within separate regulatory systems.
Information-sharing arrangements can help authorities coordinate their assessments of issuers, understand cross-border activities and identify potential risks.
A clearer supervisory framework may make it easier for businesses to assess the regulatory standing of a token, although its practical benefits will depend on implementation and continuing compliance.
USDC remains a dollar-pegged crypto asset, and its practical performance depends on factors such as reserve management, redemption access, market liquidity, banking relationships and the platforms through which users hold or trade it.
The immediate consequence of the USDC MiCA classification is a change in supervisory responsibility, rather than a newly announced change to USDC’s dollar peg or its basic function.
From November 12, the EBA will oversee specified financial safeguards for the significant token, while the ACPR retains responsibility for governance and other areas.
The division of duties gives European regulators a more direct role in monitoring a stablecoin that has become significant under the bloc’s regulatory framework.
Regulatory status is one factor to consider, but it should be assessed alongside the issuer’s disclosures, redemption terms, reserve information and the risks associated with a chosen exchange or wallet.
The USDC MiCA classification also highlights a broader challenge for the industry: regulators are attempting to accommodate digital assets that operate internationally while maintaining safeguards within their own jurisdictions.
How effectively those rules balance liquidity, financial stability and access to stablecoins will remain important as the market develops.
The next milestone is November 12, 2026, when the EBA’s direct supervisory responsibilities are scheduled to begin.
Investors and market participants will be watching how the new arrangements are implemented and whether they influence the competitive position of regulated stablecoins in Europe.
The decision establishes USDC as the first significant e-money token under the EU framework. It represents a regulatory milestone for Circle, but it does not remove the market, operational or redemption risks that investors should consider before relying on any stablecoin.
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