USDC

Circle's (<a href="https://x.com/circle" rel="noopener noreferrer nofollow">@circle</a>) <a href="https://x.com/search?q=%24USDC&amp;src=cashtag_click" rel="noopener noreferrer nofollow">$USDC</a> has become the first e-money token classified as significant under the European Union's Markets in Crypto-Assets Regulation (MiCA). The European Banking Authority (EBA) made the classification after <cite>assessing the criteria set out in the regulation</cite>.
<cite>There are currently 45 e-money tokens in the EU notified under MiCA, and USDC is the first to be classified as significant.</cite><cite>In the EU, USDC is issued by Circle Internet Financial Europe SAS.</cite>
<h2 id="what-changes-on-november-12">What changes on November 12</h2>
<cite>From 12 November 2026, USDC will be subject to the dual supervision MiCA sets for significant e-money tokens.</cite><cite>Direct supervisory responsibility for own funds, reserve of assets, liquidity requirements, and recovery and redemption plans will move from France's Autorité de Contrôle Prudentiel et de Résolution (ACPR) to the EBA.</cite>
The ACPR will not step aside entirely. <cite>It will retain oversight of corporate governance, qualifying holdings, outsourcing, and conflicts of interest.</cite> Circle's French licence also remains the basis for its EU operations. <cite>The ACPR licensed Circle as an e-money institution in July 2024.</cite>
The decision applies only to USDC. <cite>Circle's euro token, EURC, is issued under the same French licence, but the decision does not cover it.</cite>
<h2 id="how-the-significance-test-works">How the significance test works</h2>
Under the regulation, <cite>the EBA classifies e-money tokens as significant where at least three of the criteria in Article 43(1) are met.</cite><cite>The indicators include the size of the holder base, the value of tokens in issue, the number and value of transactions, the size of the reserve, the issuer's international reach, its links to the financial system, and whether the issuer also provides crypto-asset services.</cite><cite>The EBA did not disclose which of the seven criteria USDC met.</cite>
The label is not permanent. <cite>The EBA annually assesses whether tokens should be considered significant or continue to meet the applicable criteria.</cite>
The EBA also moved to strengthen cross-border oversight. <cite>USDC is issued in the US by Circle Internet Financial, LLC, and the EBA has a memorandum of understanding with the New York State Department of Financial Services on cross-border stablecoin supervision.</cite>
For market participants, the change affects how reserves are monitored. <cite>MiCA's liquidity framework can require issuers of significant e-money tokens to hold at least 60% of the reserve tied to an official currency in deposits at credit institutions, compared with a 30% minimum under the standard framework.</cite><cite>The classification is not a regulatory endorsement of USDC over competing stablecoins.</cite>
Sources
<ul>
 <li><a href="https://www.finextra.com/pressarticle/111262/eba-classifies-usdc-as-significant-e-money-token-under-mica" rel="noopener noreferrer nofollow">Finextra: EBA classifies USDC as significant e-money token under MiCA</a></li>
 <li><a href="https://financefeeds.com/circles-usdc-gains-significant-e-money-token-status-in-european-union/" rel="noopener noreferrer nofollow">FinanceFeeds: Circle's USDC gains significant e-money token status in the EU</a></li>
 <li><a href="https://www.esma.europa.eu/publications-and-data/interactive-single-rulebook/mica/article-56-classification-e-money-tokens" rel="noopener noreferrer nofollow">ESMA Interactive Single Rulebook: MiCA Article 56</a></li>
</ul>

USDC Triggers a New Milestone Under MiCA

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