50k Europeans Push EU to Loosen Stablecoin Reward Limits in MiCA Review

More than 50,000 Europeans have signed a petition urging the European Commission to relax restrictions on stablecoin rewards as part of its Markets in Crypto-Assets (MiCA) review. The call is led by advocacy group Stand With Crypto EU, which argues that MiCA's current approach puts regulated euro-linked stablecoins at a disadvantage compared with bank deposits and other e-money products.

The group, citing the 50,000 submissions during the MiCA consultation period, claims its campaign has drawn more signatories than past participation levels in earlier EU crypto consultations. Stand With Crypto EU is pushing for rewards such as cashback, loyalty benefits, and fee reductions for holders of regulated stablecoins, rather than interest payments.

The European central banks have also called for changes to MiCA's treatment of stablecoins, including extending the prohibition on stablecoin interest to certain yield-generating arrangements and revising reserve liquidity expectations. The debate is unfolding amid concerns about stablecoins' financial stability implications, including liquidity and bank-deposit dynamics.