EU authority classifies Circle’s USDC as ‘significant’ under MiCA
The second-largest stablecoin by market cap will be overseen by French and EU authorities under its classification as a “significant e-money token.“
The European Banking Authority (EBA) has classified Circle's USDC stablecoin as a "significant e-money token" under the EU's Markets in Crypto Assets (MiCA) framework. This classification, given to only 45 other projects, means that the USDC stablecoin will be overseen jointly by the EBA and France's supervisory authority, the Autorité de Contrôle Prudentiel et de Résolution.
In the notice, the banking regulator highlighted that USDC, the second-largest stablecoin by market capitalization at $73 billion, will be subject to stringent regulations and safeguards. Many EU-based token issuers had previously advocated for regulated US dollar-pegged stablecoins in the region, as the lack of such oversight could hinder cross-border payments for European corporates.
AllUnity CEO Alexander Höptner emphasized the importance of offering a stablecoin that can facilitate these transactions. Meanwhile, policymakers at the European Central Bank have been exploring the potential introduction of a digital euro since 2020, with the aim of issuing the coin in 2029 following the completion of legislation and a pilot program.
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