Crypto industry resists EU plans to ban stablecoin rewards
The crypto industry is pushing back against proposals from European central banks and regulators to ban stablecoin issuers from offering yields to holders. The European Commission has been gathering input through two consultations on the Markets in Crypto-Assets (MiCA) regulation, with a public consultation closing on August 31 and a targeted consultation for regulators and stakeholders extended to September 30.
Industry representatives argue that such a ban would put the European Union at a disadvantage. They contend that restricting yield payments could stifle innovation and competitiveness in the stablecoin market, which has grown significantly in recent years.
The European Commission's consultations aim to shape the final rules under MiCA, which seeks to provide a comprehensive regulatory framework for crypto assets in the EU. The industry's response highlights the tension between regulatory oversight and the need to foster a thriving crypto ecosystem.