50K Europeans Urge EU to Loosen Stablecoin Rewards Restrictions

Over 50,000 Europeans have urged the European Commission to relax restrictions on stablecoin rewards as part of its review of the MiCA framework. The campaign was launched by crypto advocacy group Stand With Crypto EU, which argues that regulated stablecoin providers should be allowed to offer incentives such as cashback, loyalty benefits, and fee reductions.

The current MiCA regulation prohibits issuers and service providers from paying interest on stablecoins, a restriction that Stand With Crypto believes puts the products at a disadvantage compared to bank deposits and other e-money products. The group claims that this restriction could hinder the adoption of euro-denominated stablecoins and their ability to compete with dollar stablecoins.

The campaign generated over 50,000 responses during the Commission's review consultation, exceeding six times the number of responses received from the European Central Bank's digital euro consultation. Stand With Crypto EU general manager Harry Pearce Gould stated that 'Europe doesn't need to copy' the US regulatory model, but rather should compete with it. He emphasized the importance of strong euro stablecoins for the euro's global standing and the EU's payment sovereignty.