The second-largest stablecoin by market cap will be monitored by French and EU authorities under its classification as a “major e-money token”.
The European Banking Authority (EBA) has classified Circle’s USDC stablecoin as an important e-money token under the region’s markets in the Crypto Assets (MiCA) framework.
In a notice on Wednesday, the banking regulator said The e-money token classification, given to only 45 other projects, effectively means the USDC stablecoin will be jointly overseen by the EBA and France’s supervisory authority, the Autorité de Contrôle Prudentiel et de Resolution. The stablecoin is the second largest by market capitalization, with Tether at $73 billion compared to USDt’s $184 billion.
The “significant” rating comes as many EU-based token issuers push for regulated US dollar-pegged stablecoins in the region. Stablemint CEO James Bennett told Cointelegraph that while Europe may not “aspire” to dollar-denominated stablecoins, regulators can control safeguards and rules for issuers.
Read more
