The European Banking Authority (EBA) has classified USDC as a significant e-money token (EMT) under the EU’s Markets in Crypto-Assets Regulation (MiCA).
Of the 45 EMTs notified in the EU so far, USDC is the first to receive this status.
Circle Internet Financial Europe SAS issues the token in the EU. The EBA reached its decision after assessing USDC against the criteria in MiCA.
From 12 November 2026, USDC will move to the dual oversight model that MiCA sets for significant EMTs.
At that point, the EBA will take direct charge of the issuer’s own funds, reserve assets and liquidity. Its remit will also cover recovery and redemption plans.
France’s prudential regulator, the ACPR, currently handles these areas. It will keep its role in governance, qualifying holdings and fit and proper checks.
The ACPR will also continue to oversee outsourcing and conflicts of interest.
According to the EBA, both regulators will work closely to ensure an orderly transition and effective cooperation.
In the United States, Circle issues USDC through Circle Internet Financial, LLC.
The EBA has signed a memorandum of understanding with the New York State Department of Financial Services.
This agreement supports its oversight of cross-border stablecoin activity and helps the two regulators share information.
Under MiCA, the EBA decides whether asset-referenced tokens (ARTs) and EMTs are significant.
Each year, it checks whether these tokens still meet the criteria. A Commission Delegated Regulation sets out the indicators for this review.
Issuers of significant ARTs fall under EBA oversight. By contrast, the EBA and the relevant national regulator jointly oversee issuers of significant EMTs.
Featured image: Edited by Fintech News Switzerland, based on image by mrsiraphol and Dang Pham via Magnific.
