Update
USDC Becomes EU’s First ‘Significant’ Stablecoin
The European Banking Authority (EBA) has classified Circle’s USDC as the European Union’s first major e-money token under the Markets in Crypto-Assets (MiCA) regulation. This change shifts responsibility for USDC’s financial safeguards to the EBA, while preserving existing redemption rights for holders. The classification introduces stricter financial requirements, including an increased minimum proportion of funds held in commercial bank deposits from 30% to 60%. However, USDC holders remain outside European deposit-guarantee schemes despite the enhanced oversight.