Circle’s USDC has become the first stablecoin to be classified as a ‘significant’ e-money token under the European Union’s Markets in Crypto-Assets Regulation (MiCA). The designation will bring the US dollar-pegged cryptocurrency under direct supervision by the European Banking Authority (EBA) from November 12, 2026.
The EBA announced the decision on October 14 after assessing USDC against MiCA's criteria. USDC is the first to receive this classification out of the 45 e-money tokens notified under the regulation.
The classification places USDC under the supervisory framework applicable to significant e-money tokens. These digital assets are linked to a single official currency; USDC is pegged to the US dollar.
Under the new arrangement, the EBA will oversee Circle’s compliance with requirements covering its own funds, reserve assets, liquidity and recovery and redemption plans. These measures are intended to ensure that the issuer maintains the financial resources and reserves needed to meet its obligations.
Supervision will be shared with France’s banking regulator, the Autorité de Contrôle Prudentiel et de Résolution (ACPR). While the EBA will assume direct responsibility for key financial safeguards, the ACPR will continue overseeing governance, qualifying holdings, suitability assessments, outsourcing and conflicts of interest.
Also Read: Circle's USDC Becomes First Significant Stablecoin Under MiCA
The designation follows an assessment under Article 56 of MiCA. Under the regulation, an e-money token can be classified as significant if it meets at least three criteria specified in Article 43.
These include the number of holders, transaction activity, token value, and other usage indicators. However, the EBA did not disclose which specific criteria USDC met in its October 14 announcement.
USDC is the world’s second-largest stablecoin by market capitalization. Circle issues the token in Europe through Circle Internet Financial Europe SAS, while Circle Internet Financial, LLC handles issuance in the United States.
In March, Circle urged UK lawmakers to develop a cryptocurrency regulatory framework combining elements of the EU’s MiCA rules and US stablecoin regulations.
Speaking before a House of Lords committee, Circle Policy Chief Dante Disparte said the UK has a unique opportunity to build a system that balances regulatory clarity with innovation as global competition in the cryptocurrency sector intensifies.