Over 50,000 Europeans Push for Looser Stablecoin Reward Regulations
- More than 50,000 Europeans urged the European Commission to relax restrictions on stablecoin rewards during the MiCA review consultation.
- The campaign by Stand With Crypto EU also garnered over 126,000 signatures for a petition advocating for a more permissive approach to stablecoins.
- MiCA currently prohibits issuers from offering interest on stablecoins, putting them at a disadvantage compared to traditional bank deposits.
- Responses to this campaign exceeded previous consultations, generating more than six times the 8,221 responses received in the ECB’s digital euro consultation.
- The European System of Central Banks has called for changes to MiCA that would extend interest prohibitions to lending and staking arrangements.
The push for relaxed regulations comes as central banks express concerns about stablecoins’ impact on financial stability and their competition with traditional banking systems. Allowing regulated stablecoins to offer rewards could enhance their adoption and strengthen the euro’s global standing.
With over 50,000 supporters advocating for changes, the outcome of this consultation may significantly influence how stablecoins are regulated in Europe moving forward.
