EU authority classifies Circle’s USDC as ‘significant’ under MiCA

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.

Related: Qivalis wins Dutch e-money license for euro stablecoin