USDC significant e-money token: EBA supervision 12 November
The EBA named USDC the first significant e-money token under MiCA on 14 October. What changes on 12 November, and what does not?
On 14 October 2026, the European Banking Authority (EBA) classified USDC as the first ‘significant’ e-money token under MiCA. 45 e-money tokens have been notified, and USDC is the first to receive this status. From 12 November 2026, the EBA itself will supervise, among other things, the own funds, reserves and liquidity of the issuer, Circle Internet Financial Europe SAS. Until then, that was the job of the French supervisor, the ACPR. For anyone holding USDC, nothing changes in practice: your right to redemption and the protection rules stay as they were.
USDC as a significant e-money token in short
- 14 October 2026: the EBA decides that USDC is significant, after assessing the criteria in MiCA.
- 12 November 2026: supervision of own funds, reserve assets, liquidity requirements and recovery and redemption plans then moves from the ACPR to the EBA.
- 45 e-money tokens have been notified under MiCA; USDC is the first with this status. The EBA says nothing about the other 44.
- The ACPR remains responsible for governance, qualifying holdings, fit-and-proper assessment of managers, outsourcing and conflicts of interest.
- No guarantee: USDC is not covered by a deposit guarantee scheme or investor compensation, even when the EBA is the supervisor.
- What you need to do: nothing. You do not have to convert or withdraw any USDC because of this decision.
What the EBA decided on 14 October
The EBA calls USDC, issued in the EU by Circle Internet Financial Europe SAS, a significant e-money token (EMT). The decision rests on Articles 43 and 56 of MiCA. The dual supervision that MiCA prescribes for significant e-money tokens is set out in Article 117. The press release does not name the criteria USDC met; it refers to Delegated Regulation (EU) 2024/1506 and to EBA decision EBA/DC/558.
What MiCA itself says is shorter. Article 56 lets the EBA classify an e-money token as significant if at least three of the seven criteria in Article 43(1) are met, in the period of the first information report or in at least two consecutive reports. Those criteria cover, among other things, the number of holders, the size of the issuance and the number of transactions. They also cover whether the issuer is a ‘gatekeeper’ under the Digital Markets Act, whether its activities are of international significance and whether it is interconnected with the financial system.
The EBA also concluded a memorandum of understanding with the New York State Department of Financial Services on information exchange for cross-border stablecoin activities. In the United States, USDC is issued by a different entity, Circle Internet Financial, LLC.
Who gets which tasks
According to the press release, the EBA and the ACPR are working closely together to ensure a smooth transition. The press release names no extra requirements for USDC and no transition period beyond the date of 12 November.
What changes for the issuer
For an electronic money institution that issues a significant token, Article 58 of MiCA sets a stricter regime than for an ordinary e-money token: the MiCA rules on reserves, custody, investment and liquidity apply instead of the provisions of the old E-Money Directive. That article also requires an independent audit every six months, counted from the decision. In addition, the EBA reassesses every year whether the token still meets the criteria (Article 56(8)). If it no longer does, the classification can be withdrawn and supervision goes back to the national supervisor.
Circle is an electronic money institution, registered with the ACPR under number 17788. USDC's MiCA white paper states that the reserves are held at regulated financial institutions, in segregated accounts separate from Circle's own money, and that an external auditor confirms every month that the reserves are equal to or greater than the number of USDC in circulation. The white paper gives no percentages for the composition of the reserves.
What you keep as a holder, and what you do not
The EBA's decision is about supervision of the issuer, not about your tokens. The rights set out in the white paper do not change:
Redemption at par value means 1 USDC is one US dollar. What that is in euros depends on the exchange rate. At the time of writing, the white paper names no fees for redemption under normal circumstances; it does refer to the redemption policy on Circle's website, and for a recovery scenario it mentions temporary ‘liquidity fees’.
Where this fits in October's stablecoin news
The classification comes six days after ESMA's opinion of 8 October, in which the markets supervisor asks authorised platforms to wind down services for stablecoins that do not comply with MiCA. What that means for USDT at Coinbase, and the fact that Coinbase converts balances into USDC on 30 October, you can read in Coinbase USDT conversion to USDC on 30 October: what to do. That piece mentions the EBA decision in a single paragraph; this article goes into it further. For what a stablecoin is, read our explainer on stablecoins. We wrote about the reserve rules earlier in ECB wants to replace MiCA's 60% deposit rule for stablecoins. To see which providers hold a MiCA authorisation, check our authorisation register.
What does this mean for you as a European investor?
You hold USDC on a European platform. Nothing changes in your balance or in what you can do. The ‘significant’ status gives the EBA supervision of the issuer; the platform where your USDC sits is still subject to its own national supervisor.
You hold USDC in your own wallet. Here too, nothing changes. You can have USDC redeemed by Circle if you pass the checks, or sell it through a platform.
You use USDC as a parking spot between two trades. The decision does not reduce the risk to zero. There is no deposit guarantee, and the decision says nothing about the dollar's exchange rate against the euro.
Tax. The EBA's decision does not change the tax rules in your country. You can find them country by country, with sources, in our overview of crypto tax in Europe.
What is not certain yet
- Which criteria USDC met. The EBA's press release does not name them. MiCA requires at least three of seven.
- Other tokens. The EBA says nothing about the other 44 notified e-money tokens. Whether EURC or another token follows remains open; the decision is reassessed every year.
- The exact consequences after 12 November. The press release names no new requirements or amounts for Circle. What the EBA will ask of Circle will only become clear in practice.
- The date of the white paper. USDC's white paper gives 10 July 2026 (notification to the ACPR) and an amendment date of 15 September 2026. The text does not explain the difference.
- Article 58. We read the text of Article 58 through a second source (Springlex), because EUR-Lex could not be opened at the time of writing. Check the six-monthly audit in the official text if you need it.
This article is not investment advice. Crypto, including a stablecoin, can fall sharply in value and you could lose your entire investment.
Frequently asked questions
What does a ‘significant’ e-money token mean?
It is an e-money token for which at least three of the seven criteria in Article 43(1) of MiCA are met, such as the number of holders, the size and the number of transactions. The EBA then supervises the issuer itself, alongside the national supervisor.
When does the EBA take over supervision of USDC?
On 12 November 2026. The decision itself dates from 14 October 2026.
Is USDC safer now?
The decision does not say that. It changes who supervises Circle. USDC is not covered by a deposit guarantee scheme, and your right to redemption at par value is already in the white paper.
Do I need to convert or withdraw my USDC?
Not because of this decision. If you hold USDC at Coinbase, do look at the USDT conversion on 30 October; that is separate from the EBA.
Is USDC the only token under the EBA?
At the time of writing, USDC is the only one of the 45 notified e-money tokens that the EBA calls significant.
Sources
Read on 21 October 2026.
- EBA: press release on the classification of USDC, 14 October 2026.
- Circle: USDC MiCA white paper, points A.14, B.6, B.8, D.1, I.01, I.02, I.04 and I.07.
- ESMA: Article 56 of MiCA, classification of e-money tokens, accessed 21 October 2026.
- Springlex: Article 43 and Article 58 of MiCA (Regulation (EU) 2023/1114), accessed 21 October 2026.
- Circle: page on EURC and MiCA, accessed 21 October 2026.