The European Banking Authority has classified Circle's USDC as a significant e-money token, the first of 45 notified in the EU to get the label. From November 12, the authority will take over supervision of the token's reserves from France's ACPR.
The European Banking Authority (EBA) classified Circle's USDC as a significant e-money token under the Markets in Crypto-Assets Regulation (MiCA) on Wednesday. It is the first of the 45 e-money tokens notified in the European Union to receive the label.
The EBA takes over reserve oversight
From November 12, the EBA will directly supervise USDC's own funds, reserve of assets, liquidity and recovery and redemption plans. Those tasks move from France's Prudential Control and Resolution Authority (ACPR), which licensed Circle as an e-money institution in July 2024.
The decision puts an EU-level supervisor over the reserves behind a token that Circle said had $73.3 billion in circulation worldwide at the end of June, up 19% from a year earlier. The largest dollar stablecoin is absent from regulated EU venues, and Tether did not seek MiCA authorization for USDT.
How supervision splits under MiCA
From November 12, USDC will fall under the dual supervision MiCA sets for significant tokens. The ACPR keeps governance, qualifying holdings, fit-and-proper assessments, outsourcing and conflicts of interest.
Under MiCA, a token is significant when it meets at least three of seven criteria. The EBA did not say which criteria USDC met.
The decision applies only to USDC. Circle's euro token, EURC, is issued under the same French license.
Source: Finance Magnates
Trading involves risk.
Risk Disclaimer
