Grassroots Campaign Pushes EU to Relax Restrictions on Stablecoin Benefits

Over 50,000 Europeans submitted feedback to the European Commission requesting permission for regulated stablecoin issuers to offer rewards including cashback and loyalty benefits, organized through the Stand With Crypto EU advocacy group. The campaign highlights that current regulations prohibit stablecoin rewards while allowing them for traditional bank deposits and electronic money, creating competitive disadvantage. Supporters argue that permitting rewards on euro-denominated stablecoins would strengthen Europe's payment sovereignty and adoption against dollar-denominated alternatives.

The grassroots effort represents a significant public response to Europe's cryptocurrency regulatory framework. Stand With Crypto EU's campaign garnered substantially more submissions than previous major regulatory consultations, including the European Central Bank's digital euro review and the Commission's 2020 crypto policy inquiry. The disparity suggests considerable stakeholder engagement around stablecoin policy specifics.

Competing regulatory priorities have emerged during the MiCA review process. While the advocacy group seeks permission for customer incentives on stablecoins, the European System of Central Banks has proposed expansions to reward prohibitions and structural changes to reserve requirements. Central banks cite concerns about deposit migration from traditional lenders and timing misalignments between blockchain settlement speeds and conventional banking operations.