EU Stablecoin Debate Heats Up as 50,000 Citizens Call for Rewards Relaxation

Over 50,000 EU citizens have signed a petition urging the European Commission to relax restrictions on stablecoin rewards under the MiCA regulation. The campaign, organized by Stand With Crypto EU, aims to allow regulated stablecoins to offer rewards directly to holders, including cashback, loyalty benefits, and reduced fees. The group argues that people who choose a regulated stablecoin should not get fewer benefits than they would from a bank or other e-money payment product.

The central banks, including the European Central Bank, want to keep the current ban on stablecoin rewards and extend it to indirect perks. They argue that stablecoins are intended for making payments, not for saving, and that allowing rewards would make them behave like deposit accounts.

The campaign's core argument is that Europe risks losing talent and business if its rules stay tighter than those overseas. The group points to the US as a reference point, where stablecoin issuers are banned from paying interest directly, but exchanges are still allowed to offer rewards to users.

The outcome of the MiCA review will shape whether euro-area stablecoins can compete on the same terms as products available in the US and other regions. The European Commission will weigh the input from both campaigners and monetary authorities before making a decision.