Circle's USDC Becomes First 'Significant' E-Money Token Under EU's MiCA
On October 14, Circle's USDC, a stablecoin pegged to the dollar, became the first 'significant' e-money token under the EU's Markets in Crypto-Assets Regulation (MiCA). Among 45 e-money tokens notified, USDC stands out as the first to achieve this status. The European Banking Authority (EBA) will start its oversight on November 12, 2026. France's ACPR, which granted Circle permission to issue USDC and EURC in July 2024, is responsible for monitoring governance and potential conflicts of interest. This designation introduces additional supervision but does not alter USDC's dollar peg or its authorization in Europe. The EBA determines a token's significance based on Article 43 criteria, though it did not clarify which criteria USDC fulfilled. USDC ranks as the second-largest stablecoin after Tether's USDT. Additionally, the EBA announced a memorandum with New York's Department of Financial Services to facilitate cross-border stablecoin information sharing.
Key facts
- The EBA announced USDC's 'significant' e-money token status on October 14, the first among 45 notified tokens.
- Direct EBA supervision of USDC reserves, liquidity, own funds, and recovery plans starts November 12, 2026.
- France's ACPR retains oversight of governance, ownership, management assessments, outsourcing, and conflicts of interest.
- Circle Internet Financial Europe SAS issues USDC in the EU; Circle Internet Financial, LLC issues it in the US.
- The ACPR authorized Circle to issue USDC and EURC in July 2024.
- MiCA Article 56 requires significant status when at least three Article 43 criteria are met; the EBA did not say which USDC met.
- USDC ranks second among stablecoins by market capitalization, behind Tether's USDT.
- The EBA confirmed a memorandum of understanding with the New York State Department of Financial Services.
- Circle has urged EU policymakers to revisit minimum bank-deposit reserve requirements, citing the 2023 Silicon Valley Bank collapse and about $3.3 billion in temporarily inaccessible reserves.
Entities
Institutions
- Circle
- Circle Internet Financial Europe SAS
- Circle Internet Financial, LLC
- European Banking Authority
- Autorité de Contrôle Prudentiel et de Résolution
- New York State Department of Financial Services
- Tether
- Silicon Valley Bank
- NFT Plazas
Locations
- European Union
- France
- United States
- New York