Circle’s USDC becomes the EU’s first significant e-money token under MiCA, bringing new EBA supervision and stricter regulatory oversight from November 12, 2026.
Circle’s USDC has become the European Union’s first significant e-money token under the Markets in Crypto-Assets Regulation (MiCA). The European Banking Authority (EBA) has made the classification following a review of the stablecoin against the requirements of the regulation.
EBA Grants USDC Significant Status Under MiCA
With the decision, USDC becomes the first major token among 45 e-money tokens that have been notified under MiCA. As a result, Circle is now subject to a new supervisory regime that will help to oversee key stablecoin activity in European markets.
In Europe, USDC is minted by Circle Internet Financial Europe SAS. Meanwhile, its United States operations are managed by Circle Internet Financial, LLC. The stablecoin is the second largest by market cap worldwide after USDT from Tether.
Related reading: ESMA Sets Jan. 8 Deadline for Non-MiCA Stablecoin Exit | Live Bitcoin News
As per CoinMarketCap data, the market value of USDC is around $73 billion. But its new categorization is based on regulatory demands, not just market size. Under MiCA, the EBA will consider the relevant criteria to decide if crypto tokens are significant.
In addition, the classification brings direct EBA supervision in key areas. These are the responsibilities pertaining to capital requirements, reserve assets, liquidity rules, and recovery and redemption plans. The ruling thus places greater responsibility on the European regulators to oversee USDC’s financial protections.
The new framework also provides for cooperation between national and European authorities. This enables regulators to coordinate efforts in the event of a stablecoin being used across markets.
EBA and France Prepare for USDC Supervision in November
Starting November 12, 2026, USDC will enter joint supervision by the EBA and France’s Autorité de Contrôle Prudentiel et de Résolution (ACPR). In this scheme, the EBA will directly regulate capital, reserves, liquidity, and recovery and redemption planning.
The ACPR will continue to oversee other regulatory aspects. These are corporate governance, qualifying holdings, suitability assessments, outsourcing, and conflicts of interest. Both authorities will work together in order to facilitate a transition and supervision that is smooth and effective.
Moreover, the EBA has entered into an MOU with the New York State Department of Financial Services (NYDFS). This agreement facilitates information sharing and cooperation on USDC’s cross-border activities.
This is because Circle issues USDC in both Europe and the United States. Therefore, regulators must cooperate to understand risks across markets. It also provides for oversight in cases of multiple jurisdictions in stablecoin operations.
Under MiCA, the EBA has responsibility for classifying significant asset-referenced tokens and e-money tokens. Furthermore, the authority periodically checks the relevant tokens to see if they meet the criteria.
The USDC ruling underscores the increasing relevance of the European regulation of stablecoins. However, significant status also brings additional supervisory responsibilities for Circle. The new deal will focus more on reserves, liquidity, and financial recovery planning.
Finally, the classification is a significant regulatory milestone for USDC in the European Union. The EBA and French authorities will share supervisory responsibilities under MiCA from November 12. Their collaboration will help to track the stablecoin’s activities and its adherence to European regulations.
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