EU banking regulator labels Circle's USDC a significant stablecoin under MiCA

what happened

The European Banking Authority (EBA) has placed Circle's USDC stablecoin in the significant e-money token category under the EU's MiCA framework, Cointelegraph reports. The regulator announced the decision in a notice published on Wednesday.

Only 45 other projects hold this classification. As a result, USDC will be overseen jointly by the EBA and France's Autorité de Contrôle Prudentiel et de Résolution. With a market capitalization of $73 billion, USDC is the second largest stablecoin, behind Tether's USDt, which stands at $184 billion.

The move comes as many EU-based token issuers have pushed for regulated stablecoins pegged to the US dollar. Meanwhile, policymakers at the European Central Bank continue to study a possible digital euro. The EU authority first proposed a central bank digital currency in 2020, and its issuance could begin in 2029, after legislation is concluded and a pilot program is completed.

why it matters

The classification strengthens regulatory control over the largest dollar-pegged stablecoins in Europe and could affect the terms under which they operate for European businesses and payment providers. For the market, it signals that MiCA rules are being applied to major players, not only to local issuers.

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