More than 50,000 Europeans have called on the European Commission to relax MiCA’s rules on stablecoin rewards. The mobilization comes at a time when Brussels is reviewing its crypto framework. A separate petition brought by Stand With Crypto EU also exceeds 126,000 signatures. At the center of the debate: cashback, loyalty benefits and above all remuneration for regulated stablecoins.
In brief
- More than 50,000 people have written to the European Commission about MiCA.
- A parallel petition exceeds 126,000 signatures.
- The rewards and returns linked to stablecoins focus part of the debate.
Crypto pushes Brussels to review rewards
The consultation launched by the European Commission in May ended on September 30. Its objective: to verify whether MiCA remains suitable after its first years of application and in the face of rapid changes in the crypto market.
This revision had already pushed the ECB to request a tightening of the ban on returns on stablecoins. Stand With Crypto EU argues the opposite direction. The organization says more than 50,000 Europeans sent a message to the Commission during the consultation. Another petition calling for a more stablecoin-friendly European strategy also had more than 126,000 signatures.
Demand particularly concerns MiCA-compliant stablecoins. The organization wants their users to be able to receive certain benefits, such as cashback, fee reductions or loyalty rewards.
It also calls for the possibility of redistributing part of the returns generated by the assets placed in reserve. For Stand With Crypto, current restrictions put stablecoins at a disadvantage compared to bank deposits and certain other financial products. 50,000 letters do not change the law. However, they arrive directly during its revision.
MiCA already bans interest on stablecoins
European rules are quite precise. Section 40 of MiCA prohibits issuers of asset-referenced tokens and associated crypto providers from granting interest. Article 50 applies a comparable rule to electronic money tokens.
The text goes even further. An advantage related to the length of time a user holds their tokens can be considered interest.
It is precisely this border that the industry now wants to re-discuss. The subject goes beyond simple rewards programs. Euro stablecoins remain very small compared to dollar-backed assets. This year, however, MiCA strongly stimulated Circle’s EURC activity.
Stand With Crypto believes that allowing more remuneration could strengthen euro-denominated stablecoins and make them more competitive. The organization also cites the United States, where the regulatory framework for stablecoins has evolved rapidly.
Brussels had already launched its review in this new environment. The rise of stablecoins and the American framework have placed MiCA under new pressure. Europe must now decide how far it wants to modify its first major crypto framework.
On the contrary, central banks want stricter rules
User mobilization constitutes only part of the file. European central banks, for their part, are proposing to strengthen certain rules. The European System of Central Banks particularly wants the ban on returns to be able to more clearly cover indirect mechanisms linked to lending, borrowing or staking.
The disagreement is clear. On the one hand, Stand With Crypto wants to enable more rewards to drive the adoption of regulated stablecoins. On the other hand, central banks are concerned about the consequences of interest-bearing digital assets capable of competing more directly with bank deposits.
The ECB also monitors their growth. She believes that stablecoins can create liquidity risks and move deposits out of the traditional banking system. The Commission has not yet announced any definitive changes. Its consultation must now feed into the report provided for under articles 140 and 142 of MiCA. This work could, if Brussels deems it necessary, lead to a legislative proposal intended to modify or supplement the regulation. The 50,000 letters therefore arrive at the right time. But they face central banks that demand almost the exact opposite.
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