50,000 Europeans Urge the EU to Lift MiCA Restrictions on Stablecoin Rewards
A campaign of 50,000 letters demands the European Commission to soften the ban on interest on stablecoins. The group Stand With Crypto EU cites U.S. competition and euro monetary sovereignty to justify its call.
Over 50,000 European citizens have sent a letter to the European Commission, requesting that the MiCA framework be revised to allow regulated stablecoin issuers to offer incentives such as cashback, loyalty benefits, or fee reductions. The petition, led by the advocacy group Stand With Crypto EU, was submitted during the official consultation period, which closed on Wednesday, September 30, according to CoinTelegraph.
Stand With Crypto EU notes that over 126,000 signatories already support a more permissive approach, while the responses to the ECB's consultation on the digital euro reached only 8,221, less than one-tenth of the mobilized volume on the topic of stablecoins. The group also highlights that the 198 responses received during the first consultation by the Commission on crypto in 2020 have been far surpassed, demonstrating the scale of citizen mobilization.
European Central Banks Call for Expanded Ban to Include Loans, Borrowing, and Staking
On September 22, the European System of Central Banks (ESCB) submitted an official response to the Commission, reiterating the current ban on interest on stablecoins and requesting its extension to arrangements involving lending, borrowing, and staking that generate returns. This position, detailed in the ESCB's press release, aims to prevent stablecoins from becoming competitive vehicles for traditional bank deposit returns.
Harry Pearce Gould, CEO of Stand With Crypto EU, stated to CoinTelegraph: "We call on the Commission to take advantage of the MiCA review to authorize regulated stablecoins to offer rewards to holders." He added that the U.S. has clearly chosen stablecoins as the regulatory layer for tokenization and that Europe must remain competitive without copying the American model but by offering incentives to support the adoption of euro-denominated stablecoins.
MiCA Bans Interest on Stablecoins, Creating a Disadvantage Against Bank Deposits
The MiCA text, which came into force in 2024, explicitly prohibits crypto issuers and service providers from paying interest on stablecoins, a measure that Stand With Crypto EU deems "unfavorably compared to bank deposits and e-money products that can offer benefits to customers." This ban limits the ability of stablecoins to attract users seeking returns, even as euro-term deposits already offer positive interest rates.
According to the ESCB's analysis, the absence of yield mechanisms prevents euro-stablecoins from gaining market share, particularly against dollar-denominated stablecoins that benefit from a more flexible regulatory environment in the U.S. The adoption of incentives could thus enhance the competitiveness of European stablecoins, support euro payment sovereignty, and reduce reliance on American infrastructure.
European Commission Closes MiCA Consultation as Euro Payment Sovereignty is at Stake
The official Commission consultation on revising MiCA closed on September 30, marking the end of a process that gathered over 50,000 public responses, according to CoinTelegraph's report. The Commission must now analyze these contributions before proposing any legislative amendments, a timeline that could span several months.
Industry actors emphasize that loosening reward rules would be a strategic lever to consolidate the euro's position in the landscape of digital payments. By allowing euro-stablecoins to offer cashback or reduced fees, the EU could strengthen the "payment sovereignty" Gould referenced, an argument that resonates particularly as the ECB explores the launch of a digital euro.
Toward Competitive Euro Stablecoins? Expected upcoming amendments
If the Commission decides to soften the restrictions, stablecoin issuers will need to implement compliance frameworks to ensure that rewards do not create risks of financial instability. Observers anticipate that providers could quickly launch cashback and fee reduction programs to attract users who currently prioritize bank deposits.
Meanwhile, market actors closely monitor signals from the ECB and ESCB, which could influence the scope of future modifications. According to CoinTelegraph, the combined pressure of citizen advocacy and the central banks' desire to preserve financial system stability creates a favorable context for regulatory rebalancing, aiming to make euro-stablecoins more attractive and support euro monetary sovereignty in the Union.
