TheBlock
The European Banking Authority has classified Circle’s USDC as a “significant” e-money token under the EU’s Markets in Crypto Assets Regulation, making it the first of 45 notified tokens to meet the threshold. From Nov. 12, the EBA will directly supervise USDC’s own funds, reserve assets, liquidity requirements, and recovery and redemption plans. France’s ACPR currently oversees those areas.
Why it matters
The designation shifts responsibility for key prudential oversight from France’s regulator to the EBA, while leaving the ACPR in charge of governance, qualifying holdings, fit-and-proper assessments, and conflicts of interest. The division of duties means supervision will remain shared across the two authorities.
The EBA also signed a memorandum of understanding with the New York State Department of Financial Services, which oversees Circle’s New York-regulated operations. The agreement is intended to support cross-border oversight and information exchange, linking EU supervision with the US regulator responsible for Circle’s New York operations.
Market impact
USDC has nearly $73 billion in circulation, making it the world’s second-largest stablecoin. Tether’s USDT leads with $184 billion, while dollar-pegged stablecoins have a combined supply of $294 billion. The designation puts the oversight framework for a major dollar-backed token into practice under MiCA.
Circle has also been expanding USDC’s commercial reach. Binance bought $100 million of Circle shares in September and agreed to a five-year arrangement to promote USDC on its platform. In August, Circle signed a sponsorship deal with Chelsea FC, where USDC will feature on the club’s shirts for the 2026/27 season.
Frequently asked questions
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What does the EBA’s significant-token designation change for USDC?
From Nov. 12, the EBA will directly supervise USDC’s own funds, reserve assets, liquidity requirements, and recovery and redemption plans.
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Which responsibilities will France’s ACPR retain?
The ACPR will continue overseeing governance, qualifying holdings, fit-and-proper assessments, and conflicts of interest.
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How many e-money tokens had been notified in the EU?
The EBA said USDC was the first of 45 notified e-money tokens to meet the significant-token threshold.
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How large is USDC compared with USDT?
USDC has nearly $73 billion in circulation. Tether’s USDT has $184 billion, while dollar-pegged stablecoins total $294 billion.
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What does the EBA’s agreement with New York’s regulator cover?
The memorandum with the New York State Department of Financial Services is intended to facilitate cross-border oversight and information exchange concerning Circle’s New York-regulated operations.
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