The European Banking Authority (EBA) classified USDC, issued by Circle, as the European Union's first significant electronic money token. The decision, announced on Wednesday (14), establishes a new supervisory regime for the stablecoin, with responsibilities split between the European regulator and the French authorities.
The classification was granted after an assessment of the criteria set out in the Markets in Crypto Assets (MiCA) regulation. Currently, 45 electronic money tokens are notified in the European Union, but USDC is the first to reach this regulatory category.
The recognition does not represent a new authorization for circulation nor impose restrictions on trading of the coin. Its immediate effect is to change the oversight structure of Circle Internet Financial Europe SAS, responsible for issuing USDC in the European market.
The significant token category is provided for in MiCA for assets that meet certain relevance criteria. It allows more direct supervision by the EBA over financial and operational aspects of issuers, without eliminating the participation of national regulators.
USDC supervision changes starting November 12
As of November 12, 2026, the EBA will assume four core areas of USDC oversight in Europe: own funds requirements, asset reserves, liquidity, and recovery and redemption plans.
In practice, the European regulator will begin directly supervising aspects related to the issuer's financial capacity, the maintenance of reserves, and the mechanisms provided for dealing with operational or financial difficulties.
The French authority Autorité de Contrôle Prudentiel et de Résolution (ACPR), however, will remain responsible for corporate governance, outsourcing, conflicts of interest, qualifying holdings, and assessment of the fitness and propriety of managers.
This split is a feature of the regime applied to significant electronic money tokens. Unlike asset-referenced tokens, whose significant issuers come under direct EBA supervision, issuers of significant electronic money tokens remain subject to the shared oversight provided for in MiCA.
The decision also has an international dimension. USDC is issued in the European Union by Circle Internet Financial Europe SAS and in the United States by Circle Internet Financial, LLC.
To facilitate oversight of activities that cross these jurisdictions, the EBA maintains a cooperation agreement with the New York State Department of Financial Services (NYDFS), signed in June 2026. The instrument provides for the exchange of information and coordination between authorities, including in crisis situations.
USDC's classification does not automatically extend to the other tokens notified in the European Union. MiCA establishes individual assessments, and the EBA conducts periodic reviews to determine whether the assets continue to meet the criteria for significant importance.
With the transfer of competences scheduled for November, USDC will be the first electronic money token to operate effectively under this shared supervision model in the European Union.
