ECB pushes to widen MiCA stablecoin yield ban as Circle, Aave push back
- —ESCB wants MiCA's stablecoin yield ban extended to lending, borrowing and staking
- —Central banks also seek to prohibit rewards, cashback and fee reductions for stablecoin holders
- —Circle and Aave Labs opposed the expansion; ESMA proposed regulating DeFi gateways instead of a ban
- —A petition against the yield ban gathered over 126,600 signatures, with 50,000+ citizens emailing the Commission
Why it matters: The MiCA review outcome will determine whether EU stablecoins can compete with dollar assets in on-chain lending and staking.
Source: Cryptopolitan