Crypto enthusiasts in Europe expressed dissatisfaction as Coinbase
$2.68B
ended its USD Coin
$0.9980
rewards program due to new regulations under the European Union (EU)’s Markets in Crypto-Assets (MiCA) framework.
Coinbase announced the changes via email on November 28. The email explained that the USDC rewards program would end on December 1 for customers in the European Economic Area (EEA), including all EU member states.
Rewards will continue to accumulate until November 30 for those qualified, but after that, the program will shut down.
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The announcement sparked a wave of sarcasm and criticism online. Paul Berg, Sablier’s co-founder, posted:
Very grateful to the EU for protecting me against earning a yield on my USDC holdings on Coinbase.
Another user, @SaravanjaFilip, added his sarcastic comment, “Big thanks to the EU lawmakers…now I can confidently stroll into my bank and lock in a guaranteed -90% real return compared to inflation. Financial security at its finest”.
The MiCA rules, which became law in June 2023, set strict guidelines for crypto companies operating in the EU. Among other things, they ban offering stablecoins’ interest—referred to as “e-money tokens”.
As a result, companies like Coinbase and Circle, the USDC creator, must fully adhere to these rules by December 30.
Not everyone is on board with the regulations. David Schwartz, chief technology officer (CTO) at Ripple Labs, commented on Berg’s post, “It’s funny how often regulations prevent companies from doing things that are unarguably pro-consumer”.
The end of Coinbase’s USDC rewards program is just one example of shifting trends in the stablecoin market. Recently, Tether also made waves by discontinuing support for its Euro-pegged stablecoin, EURT. What led to this surprising decision? Read the full story.
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