More than 50,000 European residents have petitioned the European Commission to ease restrictions on rewards for stablecoin holders during the MiCA review process. Stand With Crypto EU, led by Harry Pierce Gould, is advocating for the right of regulated providers to offer incentives such as cashback, loyalty programs, and reduced fees.
The current MiCA regulation prohibits issuers and service providers from paying interest on asset-referenced tokens and electronic money tokens. The organization argues that this regime hinders competition with traditional banking products and limits the growth of euro-denominated stablecoins against dollar-pegged alternatives.
The European System of Central Banks (ESCB) has taken an opposing stance, recommending that the existing ban be maintained and extended to indirect forms of yield, including crypto lending and staking. The ESCB argues that such schemes mimic interest payments and could circumvent current regulatory safeguards.
The ESCB also proposed revising reserve requirements for stablecoin issuers. Currently, MiCA mandates that at least 30% of reserves be held in bank deposits, with 60% required for significant tokens. Central banks suggest replacing these fixed ratios with liquidity-based requirements tied to asset maturity periods.
