European Central Banks Seek to Extend Stablecoin Yield Ban to Crypto Lending and Staking
(10 days ago) · 1 source · Summarized by CryptoBipto
Several European central banks are reportedly pushing to broaden the existing stablecoin yield prohibition under the Markets in Crypto-Assets (MiCA) framework to also cover crypto lending and staking services. The proposal would restrict crypto service providers from offering interest or yield on a wider range of crypto-related activities. The initiative is still in discussion stages and has not yet been formally adopted.
WHY IT MATTERS
When you put money in a savings account, the bank pays you interest. In crypto, similar concepts exist: lending platforms let you deposit crypto and earn returns, while staking involves locking up certain cryptocurrencies to help run a blockchain network in exchange for rewards. Think of staking like earning a small fee for helping maintain a shared computer system. European regulators already banned stablecoin issuers from paying this kind of yield, treating it like an activity only licensed banks should offer. Now some central banks want to apply the same rule to crypto lending and staking. For newcomers, this matters because it could limit the ways people in Europe earn returns on their crypto holdings, and it shows how regulators are trying to apply traditional banking rules to newer crypto activities.
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- coindesk.com
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