EU Reviewing Crypto Rules: Interest Ban on Stablecoins Under Fire

The European Union's MiCA regulation, which governs the crypto industry, is undergoing a review. The European Commission has reopened the regulation and launched a targeted consultation on its review. This means that stakeholders in the crypto industry, including issuers, service providers, and authorities, have until September 30 to submit their opinions.

The MiCA review consists of four sections: scope and definitions, asset-referenced tokens and e-money tokens, crypto-asset service providers, and decentralized finance. The consultation document asks 86 questions, with many having sub-questions and rating scales from 1 to 5. The Commission explicitly requests evidence, including data, concrete examples, and legal references.

One of the key areas of focus is the interest ban on stablecoins. Question 20 asks whether this ban should be amended, offering two options: keeping the ban or permitting interest under defined conditions. If the ban falls, interest-bearing stablecoins could become a product competing with instant-access savings accounts and money market funds.