EU Stablecoin Rules Under Fire from 50,000 European Petitioners

A coalition of over 50,000 Europeans has called on the European Commission to relax restrictions on stablecoin rewards as part of its review of the bloc's Markets in Crypto-Assets (MiCA) framework.

The campaign, led by crypto advocacy group Stand With Crypto EU, aims to allow regulated stablecoin providers to offer incentives such as cashback, loyalty benefits, and fee reductions. The current MiCA rules prohibit issuers and crypto service providers from paying interest on stablecoins, a restriction that Stand With Crypto argues puts the products at a disadvantage to bank deposits and other e-money products.

The group pointed out that more than 50,000 supporters wrote to the Commission during the consultation period, exceeding the number of responses received during previous consultations on crypto rules. The campaign also generated over six times the number of responses submitted to the European Central Bank's (ECB) digital euro consultation.