- More than 126,000 people have signed a Stand With Crypto EU petition urging the European Commission to change its approach to stablecoin regulation.
- The campaign seeks to ease MiCA restrictions on stablecoin rewards while preserving access to global stablecoins that meet transparency and reserve requirements.
- Stand With Crypto EU also wants euro-denominated stablecoins supported for payments, settlement and collateral.
More than 126,000 people have signed a Stand With Crypto EU petition urging the European Commission to change the EU’s approach to stablecoin regulation. The campaign seeks a review of restrictions under MiCA, arguing that regulated stablecoins should be able to offer rewards and that users should retain access to global stablecoins.
Stand With Crypto EU proposes allowing Earn programs for stablecoins when the yield is backed by safe, interest-bearing assets. It also calls for continued access to global stablecoins that meet transparency and reserve requirements.
The organization wants stablecoins recognized as settlement assets and eligible collateral in capital markets. It also advocates supporting euro-denominated stablecoins and their use as infrastructure for faster, cheaper and programmable cross-border payments.
Stand With Crypto EU said MiCA’s current restrictions on yield could limit user choice and fragment liquidity. It also said the development of private stablecoins should complement the EU’s work on a digital euro rather than replace it.
Euro-denominated stablecoins
Harry Pearce Gould, general manager of Stand With Crypto EU, told Cointelegraph that the organization wants the European Commission to use the MiCA review to allow regulated stablecoins to offer rewards to holders.
Pearce Gould said the United States has already chosen stablecoins as the settlement layer for tokenization. While Europe does not necessarily need to copy the U.S. approach, he said, it needs to compete with it.
He also said the ability to accrue rewards could help euro-denominated stablecoins gain broader adoption and compete with assets pegged to the U.S. dollar. Pearce Gould emphasized the importance of those assets for the euro’s international role and the EU’s payments sovereignty.
Separately, Stand With Crypto EU reported that more than 50,000 Europeans had appealed to the European Commission to ease restrictions on stablecoin rewards during consultations on the MiCA review. The proposed incentives included cashback, loyalty programs and lower fees.
The European Central Bank and the national central banks of EU countries had earlier proposed revisiting MiCA’s requirements for stablecoin reserves.
Source: Incrypted
