EBA puts Circle’s USDC under significant-token rules
The EBA named Circle’s USDC the EU’s first significant e-money token under MiCA, moving key reserve and liquidity oversight to the EU level from November 12.
The Blockheight Editors··2 min read
The European Banking Authority (EBA) classified USDC, issued in the EU by Circle Internet Financial Europe SAS, as a significant e-money token under MiCA on 14 October, according to Cointelegraph’s report on the EBA notice.
The EBA said USDC is the first significant token among 45 e-money tokens notified under MiCA. The classification brings the dollar stablecoin under joint supervision by the EBA and France’s Autorité de Contrôle Prudentiel et de Résolution (ACPR).
What changes for USDC on 12 November?
From 12 November, the EBA takes over direct supervision of Circle’s own funds, reserve of assets, liquidity requirements, and recovery and redemption plans. Those responsibilities currently sit with the ACPR, according to the EBA.
The change adds EU-level oversight to key financial safeguards for USDC’s European issuer. The EBA and ACPR said they would work together on the transition and supervisory cooperation.
Which powers stay with France’s ACPR?
The ACPR will continue supervising Circle’s governance, qualifying holdings, fit-and-proper assessments, outsourcing and conflicts of interest. The EBA’s role covers the additional requirements MiCA applies to significant e-money tokens.
USDC is issued in the EU by Circle Internet Financial Europe SAS and in the United States by Circle Internet Financial LLC. The EBA said it signed a memorandum of understanding with the New York State Department of Financial Services to support cooperation and information exchanges on cross-border stablecoin activity.
Why did USDC receive significant status?
The EBA said it assessed USDC against MiCA’s significance criteria, whose indicators are set out in an EU delegated regulation. It did not identify in its announcement which individual indicators led to the classification.
The EBA annually assesses whether tokens should be classified as significant or continue to meet the criteria. The next immediate step is the transfer of specified supervisory duties on 12 November; the EBA’s notice does not say whether any further tokens are nearing that status.
Source material
- Cointelegraph’s report on the EBA notice — cointelegraph.com