50,000 Europeans Push EU to Relax Stablecoin Rewards Limits in MiCA Review

Over 50,000 Europeans have signed a petition urging the European Commission to relax limits on stablecoin 'rewards' as part of its Markets in Crypto-Assets (MiCA) review. The advocacy group Stand With Crypto EU is behind the campaign, which argues that the current approach puts regulated euro-linked stablecoins at a disadvantage compared to bank deposits and other e-money products. The group says its outreach has dwarfed past participation levels during earlier EU crypto consultations.

Stand With Crypto EU is pushing for rewards such as cashback, loyalty benefits, and fee reductions for holders of regulated stablecoins. This is in contrast to the current MiCA rules, which prohibit stablecoin issuers and service providers from paying interest on stablecoins. The group's general manager, Harry Pearce Gould, said the Commission should use the MiCA review to allow regulated stablecoins to offer rewards to holders.

The campaign arrives as European central banks have been pressing for changes to how MiCA treats stablecoins. The European System of Central Banks (ESCB) has called for expanding the reach of MiCA's 'prohibition on stablecoin interest' to include lending, borrowing, and staking arrangements that generate yield. The ESCB has also proposed changes to liquidity expectations for stablecoin reserves, arguing that the current structure could create strain for lenders.