50K Europeans Push EU to Loosen Stablecoin Reward Rules Under MiCA

More than 50,000 people have signed a petition urging the European Commission to relax rules on stablecoin rewards under the Markets in Crypto-Assets (MiCA) framework. The petition, organized by Stand With Crypto EU, asks the Commission to allow regulated stablecoin providers to offer incentives such as cashback, loyalty programs, and fee reductions.

The group argues that the current MiCA framework prevents stablecoins from competing fairly with bank deposits and other e-money products that can provide customer benefits. They claim that allowing stablecoin rewards would help euro-denominated stablecoins build adoption and compete more effectively with dollar stablecoins.

Stand With Crypto EU's campaign has generated over 50,000 campaign emails to the Commission and a separate petition with over 126,000 signatures. The group's general manager, Harry Pearce Gould, said they want the Commission to use the MiCA review to allow regulated stablecoin providers to offer rewards to holders.

The European System of Central Banks (ESCB) has also submitted a response to the Commission's MiCA review, arguing that the current prohibition on stablecoin interest should be broadened to cover lending, borrowing, and staking arrangements that generate yield. They propose changing how reserve holdings are structured, suggesting liquidity thresholds instead of minimum bank deposit requirements.