Update
EBA Takes Over EU-issued USDC Supervision
The European Banking Authority (EBA) has taken over the supervision of USDC issued by Circle Internet Financial Europe SAS, moving its reserve and liquidity supervision to the EBA on November 12. The change brings no peg guarantee or new insurance. Circle's reserve-rule proposals remain separate. The existing statutory baseline requires credit institutions to keep at least 30% of funds received in exchange for e-money tokens in separate accounts, with the remainder invested in specified secure, low-risk and highly liquid instruments denominated in the token's referenced currency. The EBA will now supervise the EU issuer's own funds, regulatory capital, liquidity requirements, and recovery and redemption plans, while the ACPR will continue supervising governance and oversight of outsourcing and conflicts of interest.