126k Europeans Push EU to Ease Stablecoin Rules Amid Central Bank Concerns

A large number of Europeans have signed petitions calling for the European Commission to ease rules on stablecoins, particularly regarding rewards and yields. According to Stand With Crypto EU, over 126,000 signatures have been collected in support of this cause. This petition comes as the European Commission reviews its crypto framework, known as MiCA, after its first year of application.

Stand With Crypto EU is advocating for users of regulated stablecoins to be able to receive benefits such as cashback, fee discounts, or loyalty rewards. They also want to allow the redistribution of part of the yields generated by assets held in reserve. The organization believes that these restrictions put stablecoins at a disadvantage compared to bank deposits and certain other financial products.

However, European central banks, including the ECB, are concerned about the consequences of remunerated digital assets capable of competing more directly with bank deposits. They believe that stablecoins can create liquidity risks and move deposits outside the traditional banking system.