# EBA to Take Direct Oversight of Circle’s EU USDC Issuer Nov. 12

By Riza Dagoc

Canonical URL: https://www.tokenpost.com/news/regulation/32343
Published: 2026-10-15T06:51:54.000Z
Updated: 2026-10-15T06:51:54.000Z
Section: Regulation

> The EBA will supervise the issuer’s capital, reserves, liquidity and recovery plans. France’s ACPR will retain several other duties.

The European Banking Authority (EBA) will begin directly supervising Circle’s European Union USDC issuer on Nov. 12, taking charge of specified financial safeguards while France’s Autorité de Contrôle Prudentiel et de Résolution (ACPR) retains several other oversight duties.

The change follows the EBA’s Oct. 14 classification of USD Coin (USDC) issued by Circle Internet Financial Europe SAS as a significant e-money token (EMT) under the EU’s Markets in Crypto-Assets Regulation (MiCA). It was the first significant EMT among 45 e-money tokens notified under MiCA.

The EBA’s remit covers the issuer’s own funds, reserve assets and liquidity requirements, as well as its recovery and redemption plans. The ACPR keeps responsibility for governance, qualifying holdings, fit-and-proper assessments, outsourcing and conflicts of interest. The two authorities will coordinate during the transition.

Circle’s reserve structure separates USDC by issuing entity and holder location. Circle Internet Financial Europe SAS holds reserves for European Economic Area (EEA) holders, while Circle Internet Financial, LLC holds reserves for holders outside the EEA. USDC from either entity remains fungible, meaning the tokens are interchangeable.

Circle listed $72.7 billion in USDC circulation and $73.0 billion in total reserves globally as of Oct. 12. The figures do not show how much is held by the European issuer.

MiCA requires EMT issuers to place at least 30% of funds received in separate accounts at credit institutions. That minimum rises to 60% for significant issuers. In its Oct. 1 response to the European Commission’s MiCA review, Circle proposed replacing the deposit floor with a more flexible asset-liquidity requirement.

Circle also proposed keeping multi-issuance with safeguards such as dynamic reserve rebalancing. Its requests include removing a 35% cap on exposure to a single sovereign and a bank-counterparty cap measured against 1.5% of a bank’s total assets. These are policy proposals and are separate from the Nov. 12 supervisory change.

USDC is not covered by EU deposit-guarantee or investor-compensation schemes. The new division of supervisory responsibilities is scheduled to begin Nov. 12.