More than 50,000 Europeans have contacted the European Commission in support of looser restrictions on rewards offered by regulated stablecoin providers, as the European Union reviews its Markets in Crypto-Assets framework. The campaign seeks to allow benefits such as cashback, loyalty programmes and lower fees for stablecoin users.
According to Cointelegraph, the campaign was organised by crypto advocacy group Stand With Crypto EU and coincided with the close of the Commission’s consultation on MiCA on Wednesday. The group said more than 50,000 supporters submitted letters during the consultation. Separately, more than 126,000 people have signed its petition calling for a more permissive EU approach to stablecoins.
The debate places consumer incentives at the centre of a wider disagreement over how stablecoins should be regulated in Europe. Stablecoins are cryptoassets designed to maintain a relatively stable value, typically by being linked to a currency or backed by reserve assets. They are used in crypto trading and payments, and are also being considered as part of broader digital financial infrastructure.
Campaign challenges MiCA’s rewards restrictions
MiCA currently prevents stablecoin issuers and crypto service providers from paying interest on stablecoins. Stand With Crypto EU argues that the restriction makes regulated stablecoins less attractive than bank deposits and other electronic-money products, which can provide benefits to customers.
The organisation is asking the Commission to use its review of MiCA to permit rewards for holders of regulated stablecoins. It says the permitted benefits should include cashback, loyalty rewards and fee reductions, rather than being limited to direct interest payments.
Harry Pearce Gould, general manager of Stand With Crypto EU, told Cointelegraph that the group wants the Commission to allow regulated stablecoins to offer rewards. The campaign said its letter drive produced more than six times the 8,221 responses submitted to the European Central Bank’s consultation on the digital euro. It also exceeded the 198 responses received during the Commission’s 2020 consultation on crypto rules.
The group has framed the issue as part of Europe’s competition with the United States. Pearce Gould said the US had chosen to support stablecoins as a settlement layer for tokenisation, while arguing that Europe did not need to copy the US model but did need to compete with it.
Stand With Crypto EU also said rewards could help euro-denominated stablecoins gain adoption against dollar-denominated alternatives. It linked the development of stronger euro stablecoins to the euro’s international standing and the EU’s ability to maintain control over its payments infrastructure.
Central banks argue for tighter safeguards
The campaign’s appeal comes as European central banks are calling for broader changes to MiCA’s stablecoin rules, although their proposals move in the opposite direction on yield-generating products.
In a September 22 response to the Commission’s MiCA review, the European System of Central Banks proposed extending the existing ban on stablecoin interest to lending, borrowing and staking arrangements that generate yield. These activities can provide returns to users even when they are not formally described as interest payments.
The central banks also proposed replacing MiCA’s requirement that stablecoin issuers keep a minimum portion of reserves in bank deposits with liquidity thresholds. Their concern is that the current deposit-based structure could put pressure on banks if a stablecoin run required an issuer to withdraw large sums quickly.
The European Central Bank has separately pointed to a possible mismatch between stablecoin transactions and the assets backing them. Stablecoins can settle around the clock, while their reserve assets may continue to operate according to traditional settlement schedules. That difference could create challenges when users seek rapid redemptions.
The proposals reflect wider ECB concerns about the effects stablecoins could have on financial stability. In May, ECB President Christine Lagarde warned that deposits moving from banks into stablecoins could weaken bank lending and the transmission of monetary policy. She said Europe should instead give priority to tokenised financial infrastructure supported by central bank money.
Moneyiar market picture
Moneyiar market data at 09:23-09:24 on October 3, 2026, showed Ethereum at $2,684.5962209773, down 2.36% over 24 hours and up 0.04% over seven days.
Among the other listed assets, STABLE was priced at $0.0266087834, down 6.03% in 24 hours and up 1.57% over seven days. BAN stood at $0.0627351558, falling 4.79% over 24 hours and 8.91% over seven days, while AMP traded at $0.0006213924, down 1.82% over 24 hours but up 19.03% over seven days.
The consultation now gives the European Commission a set of competing positions to consider. Advocacy groups are seeking more flexibility for regulated stablecoin providers and greater support for euro-based products, while central banks are focused on limiting yield incentives, managing reserve liquidity and protecting the banking system from rapid deposit outflows.
