EU Stablecoin Rules Under Fire as Public Pushes for Reward Changes

A massive public response to the European Commission's MiCA review consultation has put pressure on the EU to reconsider its stance on stablecoin rewards restrictions. Over 50,000 Europeans submitted comments asking for regulated stablecoins to be allowed to offer cashback and loyalty perks, a move that contradicts the views of Europe's central banks.

The push was organized by Stand With Crypto EU, an advocacy group that claims a separate petition backing a broader pro-innovation stablecoin strategy has collected over 126,000 signatures. The group argues that users understand what the rewards restriction means for them in practice and want to see changes to the current rules.

The European System of Central Banks, including the European Central Bank, recently called for tightening the rules rather than loosening them. They propose extending the prohibition on direct interest-like payments to cover indirect yield as well, which would include mechanisms such as lending and staking.