EBA classifies Circle’s USDC as first significant e-money token

Key points

• EBA classified USDC as the first significant e-money token under MiCA, out of 45 notified
• Dual EBA-ACPR supervision of USDC begins November 12, 2026
• EBA takes over reserves, liquidity, own funds and recovery plans; ACPR keeps governance
• EBA also signed an information-sharing MoU with New York's financial regulator

The European Banking Authority (EBA) on Wednesday classified Circle’s USDC as a significant e-money token under the European Union’s Markets in Crypto-assets Regulation (MiCA). According to the EBA, USDC is the first of the 45 e-money tokens notified under MiCA to receive the designation.

The decision, announced in an EBA press release and reported by Cointelegraph, follows the authority’s assessment of the token against criteria set out in the regulation.

How oversight of USDC changes

From November 12, 2026, USDC will fall under the dual supervision that MiCA provides for significant e-money tokens. Some responsibilities move to the EBA from France’s Autorité de Contrôle Prudentiel et de Résolution (ACPR), the national authority that has supervised the token until now.

The EBA said it will take over supervision of the issuer’s own funds, its reserve of assets, liquidity requirements, and recovery and redemption plans. The ACPR keeps responsibility for governance, qualifying holdings, fit-and-proper assessments, outsourcing and conflicts of interest.

In the EU, USDC is issued by Circle Internet Financial Europe SAS. In the United States it is issued by Circle Internet Financial, LLC, the EBA noted. The EBA said it and the ACPR would work closely to ensure a smooth transition and effective cooperation. It also said it reassesses a token’s significance each year, so the classification is not permanent.

Legal basis and criteria

The EBA classifies tokens as significant under Articles 43 and 56 of MiCA, and Article 117 sets out the dual supervision of significant e-money token issuers. The press release points to Commission Delegated Regulation (EU) 2024/1506 for the indicators used in significance assessments but does not list them. It also does not give figures on how USDC met the thresholds.

In the same announcement, the EBA said it signed a memorandum of understanding with the New York State Department of Financial Services. The agreement is meant to support cooperation and information exchange on cross-border stablecoin activity.

Market context

Cointelegraph reported that USDC is the second-largest stablecoin, with a market capitalization of $73 billion, compared with $184 billion for Tether’s USDt. The outlet did not date those figures in the portions summarized.

The report also noted a debate among EU token issuers over dollar-pegged stablecoins. Stable Mint CEO James Bennett said Europe could not “wish away” dollar stablecoins, according to Cointelegraph, though regulators could set safeguards and rules for issuers. AllUnity CEO Alexander Höptner said offering only a euro stablecoin is not enough for European companies making cross-border payments globally.

The European Central Bank continues to explore a digital euro, which Cointelegraph said could be issued in 2029 after legislation and a pilot program.

What happens next

Circle’s EU operations will move to the split supervisory arrangement on November 12. The EBA’s annual reassessment means USDC’s status will be reviewed again. The EBA press release did not describe any new obligations for USDC holders or exchanges, and Circle’s response was not included in the materials reviewed.