ECB Seeks Wider Stablecoin Ban in MiCA Review
The European Central Bank (ECB) and national central banks have urged Brussels to strengthen stablecoin rules, specifically calling for a ban on stablecoin interest payments to be extended beyond current regulations. In a response to the European Commission's MiCA review consultation, published September 22, the ECB argued that payment of stablecoin remuneration should continue to be prohibited.
The central banks also suggested addressing attempts to circumvent the ban through schemes such as tri-party arrangements. They emphasized that the prohibition on interest payments should not stop at services covered by MiCA itself but apply to unregulated services, including crypto borrowing, lending, and staking, which some platforms are already engaging in.
The ESCB proposed a framework for regulating staking, lending, and borrowing of crypto-assets, separating agency services from investment services and banking-type activities. Stablecoin issuers are pushing into these products, with Circle's USDC borrowing being an example.