Four French financial institutions recommend conditionally permitting stablecoin rewards

AT A GLANCE

France’s four institutions support conditionally allowing third parties to offer stablecoin rewards, while opposing direct interest payments by issuers.

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France’s four major financial regulators call for MiCA to allow third parties to offer stablecoin rewards, contrary to the European Central Bank’s position

BlockBeats reports,October 27, France’s Ministry for the Economy and Finance, the Autorité des marchés financiers (AMF), the Bank of France, and the Autorité de contrôle prudentiel et de résolution (ACPR) called in their comments on revisions to the EU’s MiCA regulation for third parties such as crypto trading platforms to be allowed to offer rewards to stablecoin holders under certain conditions, rather than imposing a blanket ban. The four institutions support continuing to prohibit stablecoin issuers from paying interest directly, while allowing third parties to offer rewards provided that information is fully disclosed, guaranteed returns are not promised, the rewards are not marketed as savings products, and their impact on bank deposits is monitored.

This position differs from that of the European Central Bank and the European System of Central Banks, which advocate extending the ban to third-party rewards, lending, and staking activities. French regulators warn that excessively strict rules could weaken the competitiveness of EUR stablecoins. The European Commission must submit the MiCA assessment report before June 30, 2027 and may propose amendments. (Bitcoin News)

Original link https://m.theblockbeats.info/flash/373824

Key points

France’s Ministry for the Economy and Finance, the Autorité des marchés financiers, the Bank of France, and the Autorité de contrôle prudentiel et de résolution call for MiCA to be amended to allow third parties to offer rewards to stablecoin holders under certain conditions.
France’s four institutions support continuing to prohibit stablecoin issuers from paying interest directly.
Third-party rewards must involve full disclosure, no promise of guaranteed returns, no marketing as savings products, and monitoring of their impact on bank deposits.
The European Central Bank and the European System of Central Banks advocate extending the ban to third-party rewards, lending, and staking activities.
The European Commission must, by June 30, 2027 submit the MiCA assessment report and may propose amendments.

AI-assisted interpretation

The following is analysis, separate from reported facts. Verify important claims independently.

The core issue in this discussion is that stablecoin issuers cannot pay interest directly, but French institutions believe that third parties such as trading platforms can offer rewards under strict conditions; the European central banking system, meanwhile, wants to prohibit third-party rewards as well.

Why it matters to readers

The final rules could affect the scope for offering stablecoin reward products, as well as the competitiveness of EUR stablecoins. French institutions and the European central banking system currently hold differing views, and the final direction has not been determined.

If you hold stablecoins, regulatory rules could affect whether you can receive rewards and what disclosure and return restrictions apply to the relevant products.

Risks and unknowns

The report did not provide the official original text of the views of France’s four institutions.
The European Commission and the legislative bodies have not yet determined the final direction of the amendments.
It remains unclear what rules will ultimately apply to third-party rewards, lending, and staking activities.

Four French financial institutions recommend conditionally permitting stablecoin rewards

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