EU Stablecoin Debate Heats Up as 50,000 Europeans Urge Rewards Reversal

More than 50,000 Europeans have reached out to the European Commission in an effort to allow stablecoin rewards and perks. The emails were sent as part of a campaign by Stand With Crypto EU, a crypto asset advocacy group, during the Commission's review of MiCA, the EU's crypto asset market rulebook. According to SWC, the group claims that only EU citizens were allowed to send these emails.

The emails ask the EC to allow regulated stablecoins to offer rewards to holders and let crypto platforms offer perks such as cashback, loyalty benefits, and fee reductions because 'people who choose a regulated stablecoin should not get fewer benefits than they would from a bank or other e-money payment product.'

Meanwhile, over 126,600 people have signed a separate petition calling for even more changes to MiCA's stablecoin rules, including lifting the ban on passing through yield when backed by safe, interest-bearing assets.

The European Central Bank (ECB) and other central banks have a different agenda, suggesting that MiCA's ban on paying stablecoin holders should remain and cover indirect perks. They also asked regulators to deal with various workarounds and extend the ban beyond services MiCA regulates.