French Authorities Urge EU to Regulate, Not Ban, Third-Party Stablecoin Rewards While Keeping MiCA's Issuer Interest Ban

In a joint response to the European Commission's MiCA review, the French Treasury, AMF, Banque de France and ACPR also propose explicitly barring EU-licensed providers from servicing non-compliant stablecoins and a framework for multi-issuance. The positions are proposals, not adopted rules.

French Authorities Urge EU to Regulate, Not Ban, Third-Party Stablecoin Rewards While Keeping MiCA's Issuer Interest Ban — editorial cover artwork
French Authorities Urge EU to Regulate, Not Ban, Third-Party Stablecoin Rewards While Keeping MiCA's Issuer Interest Ban — editorial cover artwork

By Margaret Liu, Journalist, CBDCs and Regulation

France's financial authorities want the EU to keep MiCA's ban on stablecoin issuers paying interest, but to regulate rather than prohibit rewards paid by third parties such as crypto-asset service providers (CASPs) and platforms. The position is set out in a joint response by the Direction générale du Trésor, the Autorité des marchés financiers (AMF), the Banque de France and the Autorité de contrôle prudentiel et de résolution (ACPR) to the European Commission's targeted consultation on the review of the Markets in Crypto-Assets Regulation (MiCA). The Trésor published it on 20 October 2026 and the AMF and Banque de France on 21 October 2026.

These are a member state's proposals to the Commission. They do not change MiCA, which remains in force as written.

Issuer interest stays banned; third-party rewards get rules

The French authorities say the prohibition on issuers granting interest, or interest-equivalent remuneration, should be maintained for e-money tokens (EMTs) and, if the category is kept, for asset-referenced tokens (ARTs). Their reasons: paid interest could turn stablecoins into investment-like products, raise the risk of large-scale redemptions in stress, and speed deposit outflows from banks.

Indirect remuneration is treated differently. The response names rewards paid by CASPs or platforms for holding or using EMTs, returns earned by funds that hold EMTs, and returns linked to using EMTs for settlement. The authorities argue these "should be regulated rather than prohibited outright, as it tends to develop in any event". They point to the United States, where the GENIUS Act prohibits issuer interest but not third-party rewards, and warn that a stricter EU rule "could weaken the position of euro-denominated EMTs".

The conditions they propose are transparency towards holders, no promise of a guaranteed return, no marketing as a savings product and monitoring of the effect on bank deposits. They want these set in the Level 1 text, with a mandate for the European Banking Authority (EBA) to specify them.

No EU services for non-compliant stablecoins

The authorities want an explicit prohibition on EU-authorised providers servicing stablecoins that do not meet MiCA's requirements. They also propose a narrower reach for EMTs denominated in an EU currency but issued abroad: MiCA would apply where such tokens are offered to the public or admitted to trading in the Union, or serviced by EU CASPs. They argue that applying the full regime to every euro token wherever it is issued may deter international issuers from issuing in euro.

Multi-issuance allowed, under an equivalence regime

On multi-issuance, where fungible tokens are issued both inside the EU and in third countries, the response answers that the model should remain permitted under MiCA but be explicitly regulated. The framework would rest on Commission equivalence assessments of third-country regimes, cooperation between supervisors, reserve rebalancing arrangements and further safeguards on reserves and redemption rights. The authorities call the risks of multi-issuance models "highly significant" without such safeguards.

Euro stablecoins and tokenised deposits on a neutral footing

The authorities back euro-denominated EMTs and tokenised bank deposits, and want their use accelerated for cross-border payments with third countries, tokenised finance and corporate treasury. They ask for neutrality between EMTs and tokenised deposits, while preserving the primacy of central bank money as the reference settlement asset. The response does not expect stablecoins to become a mainstream retail means of payment within the EU within five years, citing SEPA-based systems, instant payments and low merchant acceptance.

Other proposals include a stronger role for the European Securities and Markets Authority (ESMA) in supervising significant CASPs and crypto conglomerates, and a framework for decentralised finance with clearer rules on staking, lending and borrowing.

Why it matters

Stablecoin rewards are one of the most contested points in the MiCA review. The response is signed by France's Treasury directorate, its two financial supervisors and the Banque de France, a Eurosystem central bank. They are backing a regulated path for third-party rewards on competitiveness grounds, citing the US approach. Combined with the push to bar EU providers from servicing non-MiCA tokens, the response points to a regime that is more open on rewards but tighter on which stablecoins can circulate through EU platforms. The Commission decides what, if anything, it proposes.

Sources

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