The European Banking Authority (EBA) has classified the USDC stablecoin as the first significant e-money token (EMT) in the European Union under the Markets in Crypto-Assets Regulation (MiCA).
The decision was announced on 14 October 2026. Of the 45 e-money tokens currently registered in the EU, USDC is the first to receive this designation.
The token is issued in the EU by Circle Internet Financial Europe SAS. After assessing USDC against the criteria set out in MiCA, the EBA granted it significant status. From 12 November 2026, supervision of the token will move to the dual oversight model that MiCA provides for significant EMTs.
From that date, the EBA will take direct responsibility for the issuer’s own funds, reserve assets, liquidity requirements, and recovery and redemption plans. France’s prudential supervisor, the Autorité de Contrôle Prudentiel et de Résolution (ACPR), which previously oversaw these areas in full, will retain responsibility for corporate governance, qualifying holdings, fit-and-proper assessments, outsourcing and conflicts of interest.
Both authorities have said they will cooperate closely to ensure an orderly transition and effective coordination. In the United States, USDC is issued by Circle Internet Financial, LLC. To support supervision of cross-border stablecoin activities, the EBA has signed a memorandum of understanding with the New York State Department of Financial Services. The agreement will enable the two regulators to exchange information and coordinate their actions.
Under MiCA, the EBA is responsible for determining whether asset-referenced tokens (ARTs) and e-money tokens (EMTs) qualify as significant. The classification is reviewed every year. The assessment criteria are set out in a delegated regulation of the European Commission. Issuers of significant ARTs fall under direct EBA supervision. In the case of significant EMTs, supervision is shared between the EBA and the national competent authority of the country where the issuer is established.
The “significant” designation does not alter the nature of the token or its peg to the U.S. dollar. It simply means tighter regulatory scrutiny, particularly in the areas of reserves and liquidity that underpin the stability of any stablecoin. For significant EMT issuers, the reserve requirements are stricter: at least 60% of funds received from customers must be held in segregated accounts at credit institutions (the threshold for ordinary EMTs is 30%).
USDC is the world’s second-largest stablecoin by market capitalization after USDT. At the time of the decision its market capitalization stood at approximately $73 billion. The EBA’s decision places one of the largest stablecoins under more direct European oversight precisely in the areas that determine confidence in the token.
This development marks an important milestone in the implementation of MiCA. The regulation introduced a single set of rules for crypto-assets across the EU, and the classification of USDC as the first significant EMT shows how European supervisors are beginning to apply those rules in practice to the market’s biggest players.
Stronger oversight of reserves and liquidity is intended to increase transparency and resilience for European users while also setting a precedent for other stablecoins that may receive the same status in the future.
