- More than 50,000 Europeans urged the European Commission to allow stablecoin rewards during its MiCA review.
- Stand With Crypto EU wants regulated stablecoin providers to offer cashback, loyalty benefits and fee reductions.
- More than 126,000 people have signed the group’s petition for a more permissive EU stablecoin approach.
- European central banks proposed extending the stablecoin interest ban to lending, borrowing and staking arrangements.
More than 50,000 Europeans have called on the European Commission to loosen restrictions on stablecoin rewards as the bloc closed its MiCA review consultation on Wednesday, according to crypto advocacy group Stand With Crypto EU.
The group said more than 50,000 supporters wrote to the Commission during the consultation. It is pushing for regulated stablecoin providers to offer incentives including cashback, loyalty benefits and fee reductions, while a separate petition for a more permissive EU approach has surpassed 126,000 signatures.
MiCA prohibits stablecoin issuers and crypto service providers from paying interest. Stand With Crypto argues that this restriction disadvantages stablecoins against bank deposits and e-money products that can offer customer benefits.
The campaign generated more than six times the 8,221 responses submitted to the European Central Bank’s digital euro consultation. It also far exceeded the 198 responses received during the Commission’s 2020 consultation on crypto rules.
“We are calling on the Commission to use the MiCA review to allow regulated stablecoins to offer rewards to holders,” Stand With Crypto EU general manager Harry Pearce Gould told Cointelegraph.
Asked whether Europe should look abroad for regulatory models, Pearce Gould said: “The US has made a clear choice to back stablecoins as the settlement layer for tokenisation. Europe doesn’t need to copy that, but it does need to compete with it.”
He added that allowing rewards could help euro-denominated stablecoins gain adoption and compete with dollar stablecoins. “Strong euro stablecoins matter for the euro’s global standing and the EU’s payment sovereignty,” he said.
Meanwhile, the European System of Central Banks has backed broader changes to MiCA’s stablecoin treatment. In a Sept. 22 response, it called for the interest ban to extend to lending, borrowing and staking arrangements that generate yield.
The central banks also proposed replacing MiCA requirements that stablecoin issuers hold a minimum share of reserves in bank deposits with liquidity thresholds. They argued that existing rules could strain lenders if a stablecoin run forced an issuer to rapidly withdraw deposits.
The European Central Bank has separately highlighted a potential liquidity mismatch. In June, it noted that stablecoins settle around the clock while reserve assets may still operate on traditional settlement timelines.
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