European regulators have designated USDC from Circle as the first asset to receive significant e‑money token status under MiCA.

Decision and supervision

According to the European Banking Authority, the designation makes USDC subject to enhanced oversight across the bloc beginning on 12.11.2024.

Joint oversight arrangement

From 12.11.2024, the EBA will conduct joint supervision with the French regulator ACPR, sharing responsibilities for oversight and coordination.

What regulators will monitor

The EBA will assess reserves, capital, liquidity and the issuer’s redemption plans designed to ensure tokenholders can redeem their holdings if problems arise.

Scope and context

The move makes USDC the first among 45 registered tokens in the EU to receive this classification under the Markets in Crypto-Assets framework.

Implications for issuers and markets

The designation subjects the issuer to closer scrutiny of financial safeguards and operational resilience requirements established by MiCA and implemented by EU authorities.