Four French financial authorities have urged the European Commission to allow third-party rewards on stablecoins under certain conditions. The position runs against the stance of the European Central Bank and the EU's national central banks, which want the ban on stablecoin interest widened.
Four French authorities want the EU to permit stablecoin rewards paid by crypto platforms and other third parties, breaking with the ECB. The French Treasury, the market regulator AMF, the Bank of France and the ACPR made the case in a joint response on revising MiCA, the EU's Markets in Crypto-Assets Regulation.
France wants rewards regulated, not banned
According to the French authorities, rewards "should be regulated rather than prohibited outright, as it tends to develop in any event." The document also points to the U.S. approach under the GENIUS Act, which prohibits issuers from paying interest but does not ban third-party rewards.
The four institutions argue that such indirect remuneration lowers the cost of holding e-money tokens and can support the 24/7 extension of financial services. They also warn that an EU framework stricter than its main competitors could weaken the position of euro-denominated tokens.
However, the authorities say permission to pay rewards should be subject to conditions. Platforms should be transparent with holders, avoid promising guaranteed returns and refrain from marketing rewards as savings products. The authorities also recommend monitoring the impact of rewards on bank deposits.
Central banks urge a wider ban
Under the current version of MiCA, both stablecoin issuers and crypto platforms, including exchanges, cannot pay interest on stablecoins simply for holding them. France still agrees that issuers should remain barred from paying interest.
EU central banks, including the ECB, argue that the ban should remain in place and want it to cover indirect perks such as rewards, fee reductions and certain loyalty benefits. They have also urged regulators to extend the ban to crypto asset borrowing, lending and staking. France wants staking and lending regulated but, unlike the national central banks and the ECB, does not call for extending the ban to them.
The European Commission must report to EU lawmakers on MiCA by June 30, 2027, and may propose changes to the law then.
Source: Bitcoin News
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