ECB Demands Stricter EU Crypto Rules, Including Ban on Stablecoin Rewards

The European Central Bank (ECB) has called for stricter regulations on cryptocurrencies and stablecoins in Europe. The bank's response to the European Commission's review of the Markets in Crypto-Assets Regulation (MiCA) argues for tougher rules on stablecoins, staking, and crypto firms.

MiCA, which went into effect in December 2024, already prohibits issuers and exchanges from paying interest on stablecoins. However, the ECB wants to extend this ban to indirect rewards such as loyalty-programme benefits.

The central banks also want stronger tools against tokens pegged to foreign currencies, including a prohibition on issuing new tokens and an obligation to redeem existing ones if they pose a threat to financial stability.

The response comes after the ECB unveiled Pontes, its system for settling tokenised assets in central bank money. The ECB's recommendations are not binding, but will be considered by the European Commission alongside other responses before deciding whether to reopen the law.