EBA Names Circle's USDC the First 'Significant' E-Money Token Under MiCA, Taking Over Reserve Oversight in November

The European Banking Authority (EBA) classified Circle's USDC as a "significant" e-money token under the EU's Markets in Crypto-Assets Regulation (MiCA) on 14 October 2026, making it the first of the 45 e-money tokens notified in the bloc to receive the label. From 12 November, the EBA will take over direct supervision of USDC's reserves, capital and liquidity from France's financial supervisor, according to the EBA's press release.

The decision moves the world's second-largest stablecoin into a heavier tier of European oversight. It also lands as Circle is lobbying Brussels to soften one of the reserve rules that now becomes the EBA's to police.

What did the EBA actually decide?

The EBA said USDC, issued in the EU by Circle Internet Financial Europe SAS, is "the first one to be classified as being significant" among the 45 e-money tokens (EMTs) that have been notified under MiCA, per its announcement. The classification rests on MiCA Articles 43 and 56, and the EBA reassesses annually whether a token still qualifies.

Significant EMTs fall under what MiCA calls dual supervision. The EBA will directly supervise four areas: own funds, the reserve of assets, liquidity requirements, and recovery and redemption plans. The Block reported that these areas are currently overseen by France's Autorité de Contrôle Prudentiel et de Résolution (ACPR).

The ACPR does not drop out. It keeps governance, qualifying holdings, fit-and-proper assessments, outsourcing and conflicts of interest. The EBA said the two authorities will cooperate closely to ensure a smooth transition. Finance Magnates noted that the ACPR licensed Circle's EU entity as an e-money institution in July 2024.

The ruling applies to USDC only. According to Finance Magnates, it does not cover Circle's euro token, EURC, which is issued under the same French licence.

Why was USDC singled out?

The EBA's release names no criteria and gives no figures on size. It points only to Commission Delegated Regulation (EU) 2024/1506, which sets the indicators for the assessment, and to EBA Decision EBA/DC/558, which covers the procedure.

Finance Magnates described the general MiCA test: a token is significant when it meets at least three of seven criteria. Examples it listed include more than 10 million holders, an issued value or reserve above EUR 5 billion, and more than 2.5 million transactions worth over EUR 500 million a day. Which of those USDC crossed is not stated by the regulator, so any specific explanation is inference.

The scale of the token is clear from market data. The Block's dashboard showed USDC supply of nearly $73 billion, against $184 billion for Tether's USDT and $294 billion for all dollar-pegged stablecoins. Finance Magnates reported that Circle put USDC circulation at $73.3 billion at the end of June, up 19% year on year but down from $77.0 billion at the end of March.

What does it change for Circle's reserves?

The most concrete tension is in reserve composition. Unchained reported that in a 1 October response to the European Commission's MiCA review, Circle said MiCA requires EMT issuers to hold at least 30% of reserves as commercial bank deposits, and that the floor rises to 60% for significant tokens.

Circle argued in that submission that the deposit rule "increases exposure to the credit and counterparty risk of the banking sector," and proposed replacing it with a looser liquidity standard, according to Unchained. The EBA's release did not address the deposit requirement. Circle had not published a statement on the classification when Unchained's article appeared.

The practical consequence is that the regulator now responsible for supervising USDC's reserve of assets is a European authority rather than a national one, at the moment Circle is asking for the underlying rule to be changed. Whether supervision by the EBA alters how the 60% figure is applied is not addressed in any of the sources reviewed.

How does the New York link fit in?

USDC is issued in the United States by Circle Internet Financial, LLC. The EBA said it has signed a memorandum of understanding with the New York State Department of Financial Services to support cooperation and information exchange on cross-border stablecoin activity.

Finance Magnates reported that the memorandum was announced on 2 June and covers information exchange, mutual assistance and crisis coordination, and that the EBA judged New York's confidentiality rules equivalent to MiCA's.

Finance Magnates reported that in July the US Office of the Comptroller of the Currency gave Circle final approval for a national trust bank, which will begin by providing custody for Circle and its affiliates.

Why it matters for exchanges and rivals

For platforms, the change is mostly one of who the supervisor is. Finance Magnates noted that from November, EU exchanges and brokers offering USDC will list a token supervised by the EBA rather than solely by a national authority.

The competitive backdrop favours compliant issuers. Finance Magnates reported that Tether's USDT is absent from regulated EU venues, because Tether did not seek MiCA authorisation and major regulated platforms delisted it before the 1 July deadline. USDC therefore holds a rare position: the largest MiCA-compliant dollar stablecoin, now also the first to carry the heavier supervisory label.

What we don't know yet

Several material points are unconfirmed. The EBA has not said which significance criteria USDC met or published the token's EU-specific size. It has not said whether the heavier tier will change reserve or capital requirements beyond what MiCA already prescribes, and it did not comment on Circle's request to replace the bank-deposit floor. The Block's article contained no direct comment from Circle.

What happens next?

The first date to watch is 12 November, when the EBA assumes its supervisory duties and the ACPR hands over the four areas. The next is the European Commission's MiCA review, to which Circle has already submitted its argument on deposits; any change to the 30% and 60% floors would have to come from that process rather than from the EBA's classification.

The annual reassessment adds a longer horizon. If other large tokens grow into the significant category, USDC will not stay the only one, and the EBA's handling of its first case will set the template. For now, the narrow, verifiable outcome is that Europe's banking regulator will directly supervise the reserves behind roughly $73 billion of stablecoins from mid-November.