Circle hands USDC reserves to EU regulators risking higher fees
Summary
From Nov. 12, the European Banking Authority supervises financial safeguards for Circle France’s EU-issued USDC, including capital, reserves, liquidity, and recovery and redemption plans. France’s ACPR retains oversight of governance and related matters. The change follows the EBA’s designation of EU-issued USDC as a significant e-money token under MiCA. Circle says the classification may lead to higher EU capital or liquidity requirements and compliance costs, but disclosed no estimate or quantified charge. The filing also notes an EBA–New York regulator memorandum to support cross-border cooperation. No changes to holders’ redemption terms or fees were announced.
