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50,000 Europeans call on EU to ease stablecoin rewards restrictions in MiCA review

CoinTelegraph
50,000 Europeans call on EU to ease stablecoin rewards restrictions in MiCA review

A 50,000-letter campaign is pressing Brussels to rethink stablecoin rewards as EU central banks seek broader changes to MiCA’s stablecoin rules.

Asanat Analysis — Why it matters

The 50,000-signature petition signals sustained grassroots pressure on EU regulators to loosen MiCA's stablecoin framework, specifically around yield-bearing mechanisms. This reflects a growing disconnect between retail user expectations (shaped by DeFi and offshore platforms) and MiCA's restrictive design, which classifies stablecoin rewards as quasi-securities offerings. The timing—coinciding with central bank requests for broader rule changes—suggests regulators may be reconsidering initial restrictions as uncompetitive relative to non-EU stablecoin providers.

MiCA's stablecoin rewards ban was intended as a consumer protection measure, but has functionally ceded European retail users to offshore protocols (Lido, Curve, Aave for wrapped stablecoins) that offer yield outside EU jurisdiction. A MiCA revision that permits regulated stablecoin rewards could repatriate activity to EU-licensed issuers and custodians, improving tax compliance and regulatory visibility. However, this reflects a broader regulatory pattern: initial restrictions imposed for safety often get relaxed under competitive pressure from jurisdictions with lighter-touch frameworks.

Watch whether future MiCA amendments carve out safe harbors for stablecoin rewards or maintain the yield prohibition while allowing alternative mechanisms (e.g., fee-sharing structures). The outcome will materially affect which stablecoin ecosystems (EUR, USD-pegged) gain traction in European markets and whether EU-based fintech platforms can compete with Asia-based and US-based DeFi protocols on utility.

MiCA (Markets in Crypto-Assets Regulatio European Union / EC Stablecoin issuers (general) ▲ DeFi protocols (offshore competitors) EU central banks
Originally reported by CoinTelegraph. Read the original article →

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