The European Banking Authority (EBA), the EU’s banking regulator, has classified USDC, the US-dollar stablecoin issued in Europe by Circle Internet Financial Europe SAS, as a “significant” e-money token under the EU’s crypto rules, known as MiCA (the Markets in Crypto-Assets Regulation).
An e-money token, or EMT, is a stablecoin pegged to a single official currency. The EBA said on 14 October 2026: “There are currently 45 EMTs in the European Union, which have been notified under MiCA, and USDC is the first one to be classified as being significant.” Under MiCA, tokens deemed significant because of their size or reach face stricter rules and closer oversight.
Who will supervise what
According to the EBA, USDC will come under the “dual supervision” MiCA sets out for significant EMTs from 12 November 2026.
Supervision of USDC’s own funds, reserve of assets, liquidity requirements, and recovery and redemption plans will move from France’s Autorité de Contrôle Prudentiel et de Résolution (ACPR) to the EBA. The ACPR will remain responsible for areas such as governance, qualifying holdings, fit and proper checks on managers, outsourcing and conflicts of interest. In short, the EBA takes over oversight of the money backing the token, while the French regulator keeps oversight of how the company is run.
USDC is issued in the US by a separate company, Circle Internet Financial, LLC. The EBA said it has signed a memorandum of understanding with the New York State Department of Financial Services to cooperate and share information on cross-border stablecoin activity.
How significance is decided
The EBA said it classifies tokens as significant under MiCA Articles 43 and 56, using indicators set out in an EU delegated regulation, and that it reassesses every year whether a token should be considered significant. It did not say which indicators USDC met.
Circle’s own MiCA white paper for USDC said: “As of the date of this White Paper, USDC does not constitute a ‘significant e-money token’ as defined by Article 56 of MiCA.” Significant tokens face tougher reserve requirements, including a higher share of reserves held as bank deposits, which Circle argued against in its response to the EU’s MiCA review, as TSN reported earlier.
What this means
- A first for MiCA. USDC is the first EU stablecoin to cross the significance line.
- Brussels gets a direct role. The EBA will oversee USDC’s reserves and liquidity from 12 November.
- The status can change. The EBA reviews significance every year.
Sources
- European Banking Authority, “The EBA classifies USDC as the first significant e-money token in the European Union”, 14 October 2026. https://www.eba.europa.eu/publications-and-media/press-releases/eba-classifies-usdc-first-significant-e-money-token-european-union
- Circle, MiCA white paper for USDC. https://www.circle.com/legal/mica-usdc-whitepaper
