Coinbase is ending its USDC Rewards program in the European Economic Area (EEA) to comply with the Markets in Crypto Assets Regulation (MiCA). This regulation affects e-money tokens and will lead to more enforcement. The program allowed users to earn rewards for holding USDC in their Coinbase Wallet, but it will now be suspended.
The MiCA regulation sets strict requirements for stablecoin issuers, focusing on transparency, liquidity, and consumer protection. These measures aim to improve the stability and reliability of stablecoins in the EU market. Major cryptocurrency exchanges, including OKX, Bitstamp, and Uphold, have started to limit the availability of non-compliant stablecoins to comply with MiCA.
Tether, the largest stablecoin, may be affected by these changes, as it is not fully compliant with MiCA. In response, Tether announced the discontinuation of support for its euro-pegged stablecoin, EURT, and is now focusing on developing stablecoins that comply with MiCA regulations.
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