Circle’s USDC Becomes First MiCA Token Classified as Significant by EBA

• Circle’s USDC became the first of 45 notified e-money tokens classified as significant under MiCA by the European Banking Authority.
• From November 12, 2026, the EBA will oversee USDC’s reserves, liquidity, own funds, and recovery and redemption plans.
• Circle continues to challenge MiCA’s reserve rules, arguing for greater emphasis on liquidity following USDC’s exposure to Silicon Valley Bank.

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 announced the classification on October 14, making USDC the first of 45 notified e-money tokens to receive the designation. From November 12, 2026, the EBA will directly supervise key financial requirements alongside France’s banking regulator.

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EBA Takes Over USDC’s Financial Supervision

The EBA will assume direct oversight of USDC’s own funds, reserve assets, liquidity requirements, and recovery and redemption plans. These responsibilities will transfer from France’s Autorité de Contrôle Prudentiel et de Résolution (ACPR) under MiCA’s framework for significant tokens.

However, the ACPR will retain oversight of corporate governance, qualifying holdings, management suitability assessments, outsourcing, and conflicts of interest. The two authorities will coordinate the transition and cooperate on supervision.

USDC is issued in Europe by Circle Internet Financial Europe SAS and in the United States by Circle Internet Financial LLC. The EBA has also signed a memorandum of understanding with the New York State Department of Financial Services to support information sharing on cross-border stablecoin activities.

USDC Becomes the First of 45 Notified Tokens

According to the EBA, regulators have received notifications for 45 e-money tokens under MiCA. USDC is the first to meet the criteria for significant classification following the authority’s assessment.

The designation does not grant Circle a new license or transfer all its regulatory oversight to the EBA. Instead, it adds direct European-level supervision of specific financial safeguards while the ACPR retains its existing responsibilities.

Circle’s French subsidiary previously received an electronic money institution license from the ACPR in July 2024. That approval allowed it to issue USDC and its euro-backed stablecoin, EURC, under European rules.

Circle’s Reserve Rules Debate Continues

The classification follows Circle’s recent call for European policymakers to review MiCA’s stablecoin reserve requirements. The company has questioned rules requiring issuers to hold part of their reserves in bank deposits.

Circle cited the 2023 Silicon Valley Bank collapse, when approximately $3.3 billion in USDC reserves became temporarily inaccessible. The company has argued for reserve requirements that place greater emphasis on liquidity rather than fixed bank deposit rules.

The EBA’s classification applies existing MiCA requirements and does not adopt Circle’s proposed changes.