USDC splits global reserves as EBA enforces Nov 12 handover
The European Banking Authority has designated Circle’s EU-issued USDC the first significant e-money token under MiCA, among 45 notified tokens. From Nov. 12, the EBA will supervise the issuer’s capital, reserves, liquidity, and recovery and redemption plans; France’s ACPR retains oversight of governance and several other areas. The change does not introduce a peg guarantee, deposit insurance, or new redemption terms. Separately, Circle has urged EU policymakers to loosen reserve rules, including mandatory bank-deposit floors, arguing they expose issuers to banking risks. The EBA also signed a cooperation memorandum with New York’s financial regulator. Circle’s proposals remain under discussion and are distinct from the supervisory handover.
