ECB Urges Tougher MiCA Rules, Wider Stablecoin Interest Ban in EU Crypto Overhaul

The European System of Central Banks on Tuesday called for tougher EU crypto rules, urging an expanded ban on stablecoin interest and a shift of exchange licensing from national regulators to ESMA, the bloc's markets watchdog. The non-binding response feeds into the European Commission's review of the Markets in Crypto-Assets Regulation (MiCA), which has applied since December 2024. The consultation closes September 30, 2026. EU diplomats expect a formal revision in 2027, subject to approval by the European Parliament and member states. The central banks said the stablecoin remuneration ban should extend to crypto lending, borrowing and staking that "replicate the economic effect of interest payments," and sought powers to halt issuance of foreign-currency-pegged tokens. They also endorsed centralizing supervision under ESMA, citing concerns over dollar stablecoin growth. The U.S. GENIUS Act permits exchange rewards, while the CLARITY Act failed in the Senate on September 15, 2026.