What the EU is targeting this time is not just stablecoin rewards, but the space for compliant stablecoins to be used in Europe.
According to Stand With Crypto EU, more than 50,000 Europeans have called for easing restrictions in the MiCA review, hoping that compliant stablecoins can offer holders cashback, loyalty benefits, and fee reductions. The organization also said that an additional 126,000-plus people signed a related petition separately.
The facts are clear: MiCA currently prohibits issuers and crypto service providers from paying interest on stablecoins. Supporters argue that this puts stablecoins at a disadvantage when competing with bank deposits and other e-money products that can provide returns. In market interpretation, the tone is more neutral-to-positive—what’s likely to improve is not the short-term price of BTC or ETH, but the attractiveness of stablecoin use cases and compliant platforms. Observation one: if the review truly drives legislative amendments, Europe’s compliant stablecoins could become even more attractive for retention and payments. Observation two: central banks are still worried about deposit outflows and run risks; the focus going forward will be whether the EU review moves into substantive law changes. Are you more interested in how relaxing rewards could drive usage growth, or in the central bank’s insistence on risk controls?
Source: Cointelegraph
#EURC #USDC
Caption 1: Pressure mounts over EU MiCA stablecoin reward restrictions · Key news points
Image source: https://cointelegraph.com/news/50000-europeans-call-on-eu-to-ease-stablecoin-rewards-restrictions-in-mica-review?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound
According to Stand With Crypto EU, more than 50,000 Europeans have called for easing restrictions in the MiCA review, hoping that compliant stablecoins can offer holders cashback, loyalty benefits, and fee reductions. The organization also said that an additional 126,000-plus people signed a related petition separately.
The facts are clear: MiCA currently prohibits issuers and crypto service providers from paying interest on stablecoins. Supporters argue that this puts stablecoins at a disadvantage when competing with bank deposits and other e-money products that can provide returns. In market interpretation, the tone is more neutral-to-positive—what’s likely to improve is not the short-term price of BTC or ETH, but the attractiveness of stablecoin use cases and compliant platforms. Observation one: if the review truly drives legislative amendments, Europe’s compliant stablecoins could become even more attractive for retention and payments. Observation two: central banks are still worried about deposit outflows and run risks; the focus going forward will be whether the EU review moves into substantive law changes. Are you more interested in how relaxing rewards could drive usage growth, or in the central bank’s insistence on risk controls?
Source: Cointelegraph
#EURC #USDC
Caption 1: Pressure mounts over EU MiCA stablecoin reward restrictions · Key news points
Image source: https://cointelegraph.com/news/50000-europeans-call-on-eu-to-ease-stablecoin-rewards-restrictions-in-mica-review?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound