EU Regulator Labels Circle’s USDC a Significant Stablecoin Under MiCA

The European Banking Authority has classified USDC as a significant e-money token under the bloc’s Markets in Crypto Assets rules, putting the world’s second largest stablecoin under closer watch.

USDC Significant E-Money Token Classification

In a Wednesday notice, the regulator said USDC will now be overseen jointly by the EBA and France’s Autorité de Contrôle Prudentiel et de Résolution. The label has been given to only 45 other projects. USDC has a market value of $73 billion, well behind Tether’s USDt at $184 billion.

Dollar Stablecoins in Europe and the Digital Euro

The decision comes as many EU token issuers push for regulated dollar pegged stablecoins in the region. Stable Mint CEO James Bennett said Europe cannot wish away dollar stablecoins, but regulators can set the safeguards and rules for issuers. AllUnity CEO Alexander Höptner said offering only a euro stablecoin is not enough for European companies making global cross border payments.

Meanwhile, the European Central Bank continues to explore a digital euro, first proposed in 2020, which could be issued in 2029 once legislation and a pilot program are complete.