50,000 Europeans call on EU to ease stablecoin rewards restrictions in MiCA review
More than 50,000 Europeans contacted the European Commission during its MiCA review to ask for looser rules on stablecoin rewards, according to Stand With Crypto EU. The group wants regulated stablecoin providers to be allowed to offer cashback, loyalty perks, and fee reductions, arguing MiCA’s ban on interest-like rewards puts stablecoins at a disadvantage versus bank deposits and e-money products. The campaign also gathered more than 126,000 petition signatures and was framed as a bid for Europe to stay competitive with the US, especially in support of euro-denominated stablecoins. Supporters say stronger euro stablecoins would help the euro’s global role and EU payment sovereignty. Central banks are pushing the opposite direction. The ESCB urged extending yield prohibitions to lending, borrowing, and staking, and suggested replacing reserve requirements with liquidity thresholds. The ECB has warned that stablecoins could create liquidity mismatches and weaken bank lending if deposits move out of banks.
