Circle hands USDC reserves to EU regulators risking higher fees
November 12 is the disclosed handover date for financial safeguards, while France’s ACPR retains governance responsibilities. Read the full story on CryptoSlateUnderstand the crypto stories that matter and what to watch next. Get The Catalyst in your inbox
Nov. 12 marks the transfer of supervision of EU-issued USDC’s financial safeguards to the European Banking Authority, according to Circle’s quarterly filing.
Under the disclosed arrangements, the European regulator oversees reserves and redemption planning, while France’s financial regulator keeps governance responsibilities.
For Circle’s European issuer, the change could mean more capital or liquidity held in the EU and higher compliance costs. Circle says it is evaluating the impact, without putting a figure on those potential obligations in the disclosure.
The transfer follows the EBA’s Oct. 14 classification of EU-issued USDC as a significant e-money token under the Markets in Crypto-Assets Regulation (MiCA). Circle describes USDC as the first e-money token to receive that designation.
The handover was planned since October, establishing the token’s classification. The November handover sets the effective date for the stated division of supervisory work.
Related ReadingThe allocation applies to USDC issued in the EU by Circle Internet Financial Europe SAS, known as Circle France.
Circle says the EBA’s direct supervisory remit covers the issuer’s own funds (regulatory capital), reserve assets, and liquidity requirements. It also oversees recovery and redemption plans.
France’s Autorité de Contrôle Prudentiel et de Résolution (ACPR) remains responsible for governance, qualifying holdings, fit-and-proper assessments, outsourcing, and conflicts of interest. Circle continues to face national oversight in those areas alongside the EBA’s financial-safeguard remit.