EU Regulator Tags Circle’s USDC as Significant Under MiCA

The European Banking Authority classified Circle’s USDC as a significant e-money token under the Markets in Crypto Assets framework, according to Cointelegraph. The notice was issued Wednesday, October 14, 2026.

The designation places the stablecoin under joint oversight by the EBA and France’s Autorité de Contrôle Prudentiel et de Résolution. Cointelegraph reported that the e-money token classification had been granted to only 45 other projects. USDC is the second-largest stablecoin by market capitalization at $73 billion, against Tether’s USDt at $184 billion.

Also read: EU issuers push MiCA-regulated dollar stablecoins alongside euro tokens

Key facts

• The EBA classified USDC as a significant e-money token under MiCA, with the notice issued Wednesday, October 14, 2026.
• Supervision will be split between the EBA and France’s Autorité de Contrôle Prudentiel et de Résolution.
• USDC ranks second among stablecoins by market capitalization at $73 billion, behind USDt at $184 billion.
• The same classification has been granted to 45 other projects, according to Cointelegraph.
• The European Central Bank first proposed a digital euro in 2020 and has signaled a possible issuance in 2029 after legislation and a pilot program conclude.

Dollar stablecoins and European payments

The classification lands as EU-based token issuers press for regulated dollar-pegged stablecoins inside the bloc. Stable Mint CEO James Bennett told CoinPulseHQ that Europe could not “wish away” dollar stablecoins, though he said regulators could set safeguards and rules for issuers. AllUnity CEO Alexander Höptner told CoinPulseHQ that a euro stablecoin alone is not sufficient for European corporates handling cross-border payments globally.

Separately, the ECB has continued work on a potential digital euro. The central bank first proposed the CBDC in 2020 and has outlined a potential issuance in 2029, pending the conclusion of legislation and a pilot program.

Also read: 50,000 Europeans Urge EU to Ease MiCA Stablecoin Reward Rules

Why it matters

Significant-token status changes who supervises USDC in Europe. Instead of national oversight alone, the EBA now shares responsibility with France’s ACPR, a structure MiCA reserves for the largest e-money tokens. For Circle, that means a single, higher-profile supervisory relationship covering its euro-area activity rather than a patchwork across member states. For EU firms that hold or transact in USDC, the practical effect is a clearer regulatory home for the token. The designation also arrives as the bloc weighs how dollar stablecoins fit alongside its own euro-denominated alternatives and the still-unlaunched digital euro.

What to watch

Watch for the EBA and France’s ACPR to publish supervisory expectations for USDC under the significant-token regime. On the ECB side, the timing of digital euro legislation and the pilot program will determine whether the 2029 issuance window holds.

Reported by cointelegraph.com.

Source: Cointelegraph