Europeans Urge EU to Loosen Stablecoin Reward Restrictions

A coalition of European citizens has launched a campaign to relax restrictions on stablecoin rewards as part of the EU's review of its Markets in Crypto-Assets (MiCA) framework. The group, Stand With Crypto EU, collected over 50,000 signatures in support of allowing regulated stablecoins to offer incentives such as cashback and fee reductions.

The MiCA framework currently prohibits issuers and crypto service providers from paying interest on stablecoins, which Stand With Crypto argues puts them at a disadvantage compared to bank deposits and other e-money products. The group claims that this restriction has led to over 126,000 people signing its petition calling for a more permissive EU approach to stablecoins.

Harry Pearce Gould, general manager of Stand With Crypto EU, emphasized the importance of competing with US regulatory models. He noted that allowing rewards could help euro-denominated stablecoins gain adoption and compete with dollar stablecoins, which are currently dominant in the market.