EU Banking Authority Labels Circle's USDC 'Significant' Under MiCA

The European Banking Authority designated Circle's USDC as a significant e-money token under the Markets in Crypto Assets framework, according to a notice published Wednesday. The classification places the stablecoin under joint oversight by the EBA and France's Autorité de Contrôle Prudentiel et de Résolution. Only 45 other projects have received the same designation, the regulator said.

The significant label is reserved for tokens that meet thresholds set out under MiCA, and it shifts supervision from a purely national level to a shared arrangement between the EU banking regulator and the issuer's home authority. For USDC, that home authority is France's ACPR. The EBA did not indicate any further conditions attached to the notice in the source report.

USDC is the second-largest stablecoin by market capitalization at roughly $73 billion, well behind Tether's USDt at about $184 billion. Circle has positioned USDC as a regulated, dollar-backed token, and the EU designation adds another layer of official recognition in a major market.

The decision lands as EU-based token issuers argue that regulated dollar-pegged stablecoins are necessary for the region's businesses. Stable Mint CEO James Bennett told Cointelegraph that Europe could not simply wish away dollar stablecoins, but that regulators retain the ability to set safeguards and rules for issuers. AllUnity CEO Alexander Höptner told Cointelegraph that a euro stablecoin alone is insufficient for European corporates handling cross-border payments globally.

Separately, the European Central Bank continues to explore a digital euro, a project first proposed in 2020. Issuance could come as soon as 2029, following the completion of legislation and a pilot program. Related developments include Qivalis securing a Dutch e-money license for a euro stablecoin, according to Cointelegraph.