EBA taps Circle's USDC as 'significant' under MiCA — stablecoin now has a European supervisor named after a pastry 🥐

Circle's USDC stablecoin has been classified as a significant e-money token under the European Union's Markets in Crypto Assets (MiCA) framework by the European Banking Authority (EBA), placing the asset under joint oversight with France's Autorité de Contrôle Prudentiel et de Résolution. The EBA issued the designation in a Wednesday notice, making USDC one of 46 projects to receive the classification to date.

The stablecoin, the second largest by market capitalization at $73 billion, trails Tether's USDt at $184 billion. The "significant" designation arrives as EU-based token issuers have pushed for regulated U.S. dollar-pegged stablecoins in the region, with executives arguing that European corporates require dollar-denominated options for cross-border payments.

Stable Mint CEO James Bennett told Cointelegraph that while Europe could not "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-pegged 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.

Separately, Dutch fintech Qivalis recently won an e-money license for a euro stablecoin, reflecting broader industry activity around regulated stablecoins in the EU market.