Author: European Banking Authority (Press Release)
Compiled by Deep潮 TechFlow
DeepChain Overview: This is the first time since MiCA's implementation that the EU has designated a stablecoin as a "significant" electronic money token: Starting November 12, Circle’s European entity will come under direct supervision by the European Banking Authority regarding its own funds, reserve assets, liquidity, and redemption plans, while also establishing information-sharing mechanisms with the New York State Department of Financial Services. Under MiCA rules, significant electronic money tokens must meet higher requirements for own funds and reserve holdings. As a result, Circle’s compliance costs and competitive moat in Europe will both rise, setting a new tone for both Circle (CRCL) and the European stablecoin landscape.
Following its assessment against the criteria set out in the Markets in Crypto-Assets Regulation (MiCA), the European Banking Authority (EBA) has designated Circle Internet Financial Europe SAS’s USDC as a significant electronic money token (EMT). USDC is the first EMT to be classified as “significant,” out of 45 EMTs currently notified under MiCA in the EU.
Starting November 12, 2026, USDC will be subject to the dual regulatory framework under MiCA for significant EMTs. This means that direct regulatory responsibilities in areas such as own funds, reserve assets, liquidity requirements, and recovery and redemption plans will be transferred from the French Prudential Supervision and Resolution Authority (ACPR) to the EBA. The ACPR will continue to oversee regulation in areas including corporate governance, qualifying holdings, fit and proper assessments, outsourcing, and conflicts of interest. The EBA and ACPR will work closely together to ensure a smooth transition and effective regulatory cooperation.
USDC is issued in the European Union by Circle Internet Financial Europe SAS and in the United States by Circle Internet Financial, LLC. To support regulatory oversight of cross-border stablecoin activities, the EBA has signed a memorandum of understanding with the New York State Department of Financial Services (NYDFS) to facilitate cooperation and information exchange between the two parties.
EBA is responsible for designating Asset-Referenced Tokens (ARTs) and EMTs as "significant" (under MiCA Articles 43 and 56) and annually assessing whether such tokens continue to meet the criteria for significance. Commission Delegated Regulation (EU) 2024/1506 specifies the indicators used for such significance assessments (see also EBA Decision EBA/DC/558). Issuers of significant ARTs are supervised by EBA, while issuers of significant EMTs are subject to joint supervision by EBA and the relevant national competent authorities (MiCA Article 117). In exercising its powers, EBA closely cooperates with other competent authorities (MiCA Articles 117(5) and 128) and the established College of Supervisors (MiCA Article 119).