EBA Takes Supervision of USDC Reserves Under MiCA Rules

Circle's European USDC issuer will answer directly to the European Banking Authority (EBA) regarding reserves, liquidity, and capital starting November 12. According to YahooStocks5, the regulatory decision follows the agency's designation of the dollar stablecoin as the first significant e-money token under Europe's Markets in Crypto-Assets Regulation (MiCA).

The EBA disclosed the classification on October 14, noting that 45 e-money tokens have been notified under MiCA across the bloc, with USDC becoming the first to cross the significance threshold. The announcement did not disclose specific figures regarding the token's size or the exact criteria met, though the agency reviews classifications annually.

Dual Supervision Structure

Circle Internet Financial Europe SAS, the token's European issuer, currently holds an electronic money institution license from France's banking and insurance supervisor, the Autorité de Contrôle Prudentiel et de Résolution (ACPR).

Under MiCA's dual supervision framework for significant e-money tokens, the EBA takes charge of capital requirements, asset reserves, liquidity, and recovery and redemption plans. Meanwhile, the ACPR retains oversight responsibilities for governance, qualifying holdings, fit-and-proper checks, outsourcing, and conflicts of interest. The two supervisors stated they will work closely together to ensure a smooth transition.

Regulatory Context

In the United States, USDC is issued by Circle Internet Financial, LLC. The EBA also cited a memorandum of understanding signed with the New York State Department of Financial Services in June to facilitate information sharing on cross-border stablecoin activity.

The regulatory shift arrives shortly after Circle filed its response to the European Commission’s review of MiCA. Circle noted that the regulation requires e-money token issuers to hold at least 30% of reserves in commercial bank deposits, a floor that increases to 60% for significant tokens. The company argued that this requirement increases exposure to banking sector credit and counterparty risk, though the EBA's release did not address the deposit mandate.

Key facts

• Circle's EU USDC issuer transitions to EBA supervision on November 12 for reserves, capital, and liquidity.
• USDC is the first e-money token classified as significant under MiCA among 45 notified tokens.
• France's ACPR retains oversight of governance, qualifying holdings, and conflicts of interest under dual supervision.
• Circle Internet Financial Europe SAS previously secured an electronic money institution license from the ACPR.