Crypto: 50,000 Europeans Push EU to Loosen MiCA Rules

More than 50,000 Europeans have asked the European Commission to ease the MiCA rules on rewards related to stablecoins. The mobilization comes as Brussels reviews its crypto framework. A separate petition led by Stand With Crypto EU also exceeds 126,000 signatures. At the center of the debate: cashback, loyalty benefits, and especially regulated stablecoin remuneration.

Crypto pushes Brussels to review rewards

The consultation launched by the European Commission in May ended on September 30. Its goal: to check if 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 yields on stablecoins. Stand With Crypto EU advocates the opposite direction. The organization states that more than 50,000 Europeans sent a message to the Commission during the consultation. Another petition demanding a more favorable European strategy for stablecoins also counted more than 126,000 signatures.

The request particularly concerns MiCA-compliant stablecoins. The organization wants their users to be able to receive certain benefits, such as cashback, fee discounts, or loyalty rewards.

It also demands the possibility to redistribute part of the yields generated by the assets held in reserve. For Stand With Crypto, the 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. Article 40 of MiCA prohibits asset-referenced token issuers and associated crypto service providers from granting interest. Article 50 applies a similar rule to electronic money tokens.

The text goes even further. A benefit related to the duration during which a user holds their tokens can be considered as interest.

This is precisely the boundary that the industry now wants to discuss again. The subject goes beyond simple reward programs. Euro stablecoins remain very small compared to assets pegged to the dollar. This year, MiCA has strongly boosted 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 stablecoin regulatory framework has evolved rapidly.

Brussels had already launched its revision 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 amend its first major crypto framework.

Central banks want stricter rules instead

User mobilization is only part of the issue. European central banks propose strengthening certain rules. The European System of Central Banks notably wants the ban on yields to more clearly cover indirect mechanisms related to lending, borrowing, or staking.

The disagreement is clear. On one side, Stand With Crypto wants to allow more rewards to promote the adoption of regulated stablecoins. On the other, central banks worry about the consequences of remunerated digital assets capable of competing more directly with bank deposits.

The ECB is also monitoring their growth. It believes that stablecoins can create liquidity risks and move deposits outside the traditional banking system. The Commission has not yet announced any definitive changes. Its consultation must now feed the report expected under articles 140 and 142 of MiCA. This work could, if Brussels deems it necessary, lead to a legislative proposal to amend or supplement the regulation. The 50,000 letters therefore arrive at the right time. But they face central banks asking for almost exactly the opposite.