EU Stablecoin Policy Tensions Rise Ahead of MiCA Review
A growing number of people are calling for looser rules on stablecoin rewards ahead of the European Union's review of its Markets in Crypto-Assets regulation, or MiCA. More than 50,000 individuals have participated in a related public consultation, while a separate petition has gathered over 126,000 signatures.
The current MiCA rules bar stablecoin issuers and crypto-asset service providers from paying interest to holders, which Stand With Crypto EU argues puts euro-denominated stablecoins at a disadvantage compared to bank deposits and e-money products. The group suggests that MiCA should permit not only interest payments but also cashback, loyalty points, and fee discounts to boost the competitiveness of these stablecoins.
However, some officials are pushing for tougher regulation. The European System of Central Banks proposed expanding the interest ban to cover lending, borrowing, staking, and other yield-generating activities in comments submitted on September 22 for the MiCA review. Christine Lagarde, president of the European Central Bank, has also warned about the impact of broader stablecoin adoption on banks.