EU Citizens Call for Relaxation of Stablecoin Regulation Rules

Over 50,000 European residents have called on the European Commission to ease restrictions on rewards for stablecoin holders. The petition, led by Stand With Crypto EU, aims to allow regulated stablecoin providers to offer incentives such as cashback, loyalty programs, and reduced fees to users.

Currently, the Markets in Crypto-Assets (MiCA) regulation prohibits issuers and crypto service providers from paying interest on asset-referenced tokens (ART) and electronic money tokens (EMT). The regulation equates rewards and other benefits related to the duration of holding the token to interest.

Stand With Crypto EU views the current regime as a barrier to competition with bank deposits and other financial products. They propose allowing holders to receive income from reserve assets, maintaining access to global stablecoins with transparency and reserve requirements, and supporting euro-denominated stablecoins.