European Banking Authority: Recognizes USDC as the first significant electronic currency token in the European Union

The European Banking Authority (EBA) announced that, according to the Markets in Crypto-Assets Regulation (MiCA), USDC issued by Circle is recognized as an "important electronic money token." USDC thus becomes the first token to meet this recognition standard among the 45 electronic money tokens reported in the European Union.

Starting from November 12, the EBA will be directly responsible for USDC's own funds, reserve assets, liquidity requirements, and oversight of the recovery and redemption plan. These areas are currently overseen by the French Prudential Supervision and Resolution Authority (ACPR). After the transfer, the ACPR will still be responsible for corporate governance, qualified holdings, suitability assessments, and conflict of interest matters.

The EBA also stated that it has signed a memorandum of understanding with the New York State Department of Financial Services (NYDFS) to facilitate cross-border regulation and information exchange. The NYDFS is responsible for overseeing Circle's regulated business in New York State. According to data from The Block, the supply of USDC is close to $73 billion, making it the second-largest stablecoin in the world.