The European Banking Authority classified Circle’s USDC as the European Union’s first significant e-money token under the Markets in Crypto-Assets regulation. The decision followed the EBA’s assessment of the significance criteria established by MiCA. It applies to USDC issued by Circle Internet Financial Europe SAS. The designation gives the EBA a direct role in supervising one of the world’s largest dollar-linked stablecoins.
USDC is issued in Europe through Circle’s French entity, which is also subject to oversight by France’s Autorité de Contrôle Prudentiel et de Résolution. Cointelegraph reported that USDC had a market capitalisation of about $73 billion when the classification was announced. The outlet described it as the second-largest stablecoin by market value, behind Tether’s USDT.
MICA SHIFTS SUPERVISORY RESPONSIBILITY
MiCA’s Article 56 provides for supervisory responsibility over an issuer of a significant e-money token to transfer from its home-state authority to the EBA. The transfer takes effect within 20 working days of notification of the classification decision. The EBA and the issuer’s home-state authority must cooperate during the transition to EU-level supervision.
Significant token issuers face enhanced reporting and supervisory obligations under MiCA. The regulation requires quarterly reporting to the EBA for significant e-money tokens denominated in a currency that is not an official EU currency when the issue value exceeds €100 million. It also requires an independent audit of the reserve of assets every six months after public offering or admission to trading.
DOLLAR STABLECOINS FACE CLOSER OVERSIGHT
The decision gives EU authorities a formal mechanism for scrutinising the scale and cross-border use of a dollar-denominated token operating within the bloc. Cointelegraph cited industry executives who said European companies still need dollar-linked stablecoins for international payments, alongside euro-denominated alternatives. The classification does not prohibit USDC; it places the token and its issuer under the regulatory treatment set out for significant e-money tokens.
The next milestone is the transfer of direct supervisory responsibility within MiCA’s 20-working-day period. Subsequent EBA disclosures and Circle’s regulatory reporting should show how the authority applies the enhanced regime in practice. The case will also provide a precedent for assessing other large e-money tokens that meet MiCA’s significance thresholds.