The European Banking Authority has classified Circle's USDC as the European Union's first "significant" e-money token under the Markets in Crypto Assets Regulation, separating it from 44 other notified e-money tokens in the bloc. The designation, announced on October 14, takes effect on November 12, 2026.
USDC is issued in Europe by Circle Internet Financial Europe SAS, a French electronic money institution. The significance threshold triggers a split supervisory model written into MiCA: the EBA assumes direct oversight of the issuer's own funds, reserve assets, liquidity requirements, and recovery and redemption plans, while France's Autorité de Contrôle Prudentiel et de Résolution retains responsibility for governance, qualifying holdings, management suitability, outsourcing, and conflicts of interest.
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 MoU is intended to facilitate cross-border oversight and information exchange between the two authorities.
USDC is the world's second-largest stablecoin by market capitalization, at approximately $73 billion, compared with Tether's USDT at roughly $184 billion. Only three of the top 25 stablecoins globally by market cap are currently MiCA-regulated: USDC, USDG, and EURC.