ECB Seeks to Expand MiCA Ban on Stablecoin Interest Payments

The European Central Bank (ECB) is pushing for an extension of the MiCA ban on paying stablecoin holders, which currently prohibits interest payments. The bank wants to expand this prohibition to include activities like lending, borrowing, and staking.

Circle and Aave Labs are among those objecting to this expansion, arguing that it would unfairly disadvantage EU-based stablecoins in global markets.

Over 50,000 Europeans have signed a petition against the proposed extension, citing concerns about competitiveness and the potential loss of business for EU platforms if regulators move forward with restrictive measures.