European Banking Authority designates Circle's USDC as first significant e-money token under MiCA

The European Banking Authority designated Circle's USDC as the European Union's first significant e-money token under the MiCA regulation, initiating a supervisory handover on November 12, 2026. The EBA will directly manage regulatory capital, reserve assets, liquidity, and redemption plans for USDC—the world's second-largest stablecoin with a $73 billion supply—while France's ACPR retains governance oversight.

EBA designation and supervisory division

• ▪The EBA said the official transfer of supervisory responsibilities over USDC from France's Autorité de Contrôle Prudentiel et de Résolution to the European Banking Authority will occur on November 12, 2026
• ▪Under the Markets in Crypto-Assets regulation, the European Banking Authority will assume direct supervisory authority over USDC's regulatory capital, reserve assets, liquidity requirements, and recovery and redemption plans
• ▪On October 14, 2026, the European Banking Authority designated USDC, issued by Circle Internet Financial Europe SAS, as the European Union's first significant e-money token among 45 notified e-money tokens under the Markets in Crypto-Assets regulation
• ▪France's Autorité de Contrôle Prudentiel et de Résolution will retain supervisory authority over Circle's EU issuer governance, qualifying holdings, fit-and-proper assessments, outsourcing, and conflicts of interest

Exclusions of investor guarantees and protections

• ▪Circle's USDC white paper excludes European Union deposit-guarantee schemes and investor-compensation coverage for European Economic Area holders of USDC
• ▪The European Banking Authority's designation and November 12, 2026 supervisory transition offer no price peg guarantee, insurance, or automatic changes to redemption terms for USDC holders

Circle's MiCA consultation recommendations

• ▪Circle recommended removing the EU's Markets in Crypto-Assets Regulation's 35% single-sovereign exposure cap and a banking-counterparty cap set at 1.5% of a bank's total assets
• ▪In an October 1, 2026 consultation response, Circle recommended replacing mandatory minimum bank deposit rules with a flexible asset-liquidity requirement, arguing bank deposit floors increase credit and counterparty risk