EU authority classifies Circle’s USDC as ‘significant’ under MiCA
Quick Look
- The European Banking Authority has classified Circle's USDC stablecoin as a significant e-money token under the EU's MiCA framework, meaning it will be jointly overseen by the EBA and France's ACPR.
- USDC is the second-largest stablecoin by market cap at $73 billion.
- The classification reflects growing acceptance of dollar-pegged stablecoins in Europe, even as the ECB advances its digital euro project targeting a 2029 launch.
AI-generated summary
Why It Matters
The European Banking Authority has classified Circle's USDC stablecoin as a significant e-money token under the EU's Markets in Crypto Assets (MiCA) framework, placing it under joint supervision with France's ACPR. USDC is the second-largest stablecoin by market capitalization at $73 billion.
The European Banking Authority (EBA) has classified Circle’s USDC stablecoin as a significant e-money token under the region’s Markets in Crypto Assets (MiCA) framework.
In a Wednesday notice, the banking regulator said the e-money token classification, granted to only 45 other projects, effectively means the USDC stablecoin will be jointly overseen by the EBA and France’s supervisory authority, the Autorité de Contrôle Prudentiel et de Résolution. The stablecoin is the second largest by market capitalization, at $73 billion compared to Tether USDt’s $184 billion.
The “significant“ classification came as many EU-based token issuers pushed for regulated US dollar-pegged stablecoins in the region. Stable Mint CEO James Bennett told Cointelegraph that while Europe couldn’t “wish away“ dollar stablecoins, regulators could control safeguards and rules for issuers.
“For European corporates to make cross-border payments globally, offering only a euro stablecoin isn’t enough,” AllUnity CEO Alexander Höptner told Cointelegraph.
As authorities and issuers move closer to embracing dollar stablecoins, policymakers at the European Central Bank continue to explore the potential introduction of a digital euro. The EU authority first proposed the central bank digital currency in 2020, with the potential to issue the coin in 2029 after the conclusion of legislation and a pilot program.
What to Watch
AI outlook — possibilities, not facts
The ECB will proceed with the digital euro legislation and pilot program, aiming for a potential issuance in 2029.
Likely · Within months
Open Questions
- How will the joint oversight by EBA and ACPR function in practice?
- What specific safeguards and rules will apply to USDC issuers in the EU?
- How might the ECB's digital euro project compete with regulated dollar stablecoins like USDC?
