EU Crypto Community Pushes Back Against Stablecoin Yield Ban

Crypto and financial services companies, including Circle and Aave Labs, have pushed back against the European Central Bank's (ECB) proposal to extend a ban on stablecoin yields in the MiCA regulation.

In a public consultation that closed on September 30, over 50,000 Europeans submitted responses opposing the ECB's position, which includes extending the ban to lending and staking.

A separate petition gathered more than 126,600 signatures demanding the removal of the yield ban for tokens backed by safe assets that generate interest.

The European System of Central Banks (ESCB) argues that stablecoins are designed for payments, not savings, and that remunerating their holdings assimilates them to bank deposits governed by different regulations.