The European Banking Authority (EBA) has designated Circle's USDC stablecoin as the first 'significant e-money token' under the EU's Markets in Crypto-Assets Regulation (MiCA). This classification applies to one of 45 e-money tokens notified in the EU. Starting November 12, the EBA will take over direct supervision of USDC's reserves, capital, liquidity, and redemption plans, transferring oversight from France's Prudential Control and Resolution Authority (ACPR).
USDC, which had $73.3 billion in circulation as of June 2026, represents a major milestone in EU crypto regulation. The decision impacts exchanges and brokers offering USDC in the EU, as they will now deal with a token supervised by an EU-level authority rather than a national one. Binance and Kraken have expanded their support for USDC, with Binance even investing $100 million in Circle and securing a five-year agreement tied to USDC balances.
Under MiCA, a token is considered significant if it meets at least three of seven criteria, including having over 10 million holders, a reserve value above EUR 5 billion, or more than 2.5 million daily transactions exceeding EUR 500 million. The EBA will reassess USDC's significance annually. The decision applies solely to USDC and not to Circle's euro token, EURC, which is issued under the same French license.
The EBA and ACPR will collaborate closely to ensure a smooth transition, with the ACPR retaining oversight of governance, qualifying holdings, and conflicts of interest. The EBA also has a memorandum of understanding with the New York State Department of Financial Services for cross-border stablecoin supervision, facilitating information exchange and mutual assistance. In the US, Circle received final approval from the Office of the Comptroller of the Currency for a national trust bank.