Circle’s USDC has become the first stablecoin to be classified as a “significant” e-money token under the European Union’s Markets in Crypto-Assets framework, a step that will place part of its oversight directly under the European Banking Authority.

The decision was announced by the EBA on October 14 after it assessed USDC against MiCA’s criteria. According to the authority, USDC is the first of 45 e-money tokens notified under the regime to receive the designation, with the new supervisory arrangement taking effect on November 12, 2026.

What the designation changes

The new status does not place USDC entirely under a single EU regulator. Instead, MiCA splits responsibilities between the EBA and the national authority already involved in Circle’s supervision, France’s Autorité de contrôle prudentiel et de résolution, or ACPR.

From November 12, the EBA will directly oversee areas tied to financial resilience and user protection. Those responsibilities include supervision of reserve assets, liquidity, capital requirements, recovery procedures, and token redemption plans.

Role of France’s ACPR remains in place

France’s ACPR will continue to supervise other parts of Circle’s operations related to USDC in the EU. The regulator retains responsibility for governance, outsourcing arrangements, ownership assessments, management suitability, and potential conflicts of interest.

The EBA said the new classification does not remove the ACPR from the process or shift all regulatory authority to the European level. Rather, it assigns specific safeguards to the EBA under MiCA Article 117 while leaving other supervisory tasks with the national authority.

Coordination inside and outside the EU

The two regulators are expected to cooperate to maintain continuity in supervision once the significant-token regime begins. That cooperation is central to the structure set out for USDC, since oversight will be shared rather than transferred outright.

Alongside the USDC designation, the EBA also signed a memorandum of understanding with the New York State Department of Financial Services. The agreement is intended to support cross-border information sharing related to stablecoin supervision.

Why the decision matters

The announcement marks an early test of how the EU plans to supervise larger stablecoins under MiCA. By making USDC the first notified e-money token to receive the “significant” label, the EBA is setting out how responsibilities will be divided when a token meets the framework’s higher threshold for oversight.

The next confirmed step is the start of direct EBA supervision on November 12, 2026. At that point, USDC’s reserve, liquidity, capital, recovery, and redemption arrangements in scope under MiCA will fall under the authority’s direct review, while the ACPR continues supervising the remaining areas assigned to it.

Source: crypto.news