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The European Banking Authority has classified Circle's USDC as the EU's first significant e-money token under MiCA, making it the first of 45 notified EMTs to receive the designation. USDC is the world's second-largest stablecoin by market capitalization.
Why it matters
The classification brings a new layer of oversight for a major dollar-pegged stablecoin in the EU. From November 12, USDC will face joint supervision by the EBA and France's ACPR.
Market impact
The EBA will oversee capital, reserves, liquidity, and recovery and redemption plans. The ACPR will retain oversight of governance and other operational matters.
Source: [The EBA classifies USDC as the first significant e-money token in the European Union | European Banking Authority](https://www.eba.europa.eu/publications-and-media/press-releases/eba-classifies-usdc-first-significant-e-money-token-european-union)
Frequently asked questions
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What does USDC's significant e-money token classification mean?
It is the first of 45 notified EU e-money tokens classified as significant under MiCA, bringing USDC under joint supervision by the EBA and France's ACPR.
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When does joint supervision of USDC begin?
USDC will face joint supervision by the EBA and France's ACPR starting November 12.
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Which USDC matters will the EBA oversee?
The EBA will directly oversee capital, reserves, liquidity, and recovery and redemption plans.
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What oversight remains with France's ACPR?
The ACPR retains oversight of governance and other operational matters.
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How many EU e-money tokens had been notified under MiCA?
There were 45 notified e-money tokens in the EU, and USDC was the first classified as significant.
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