On November 28, Coinbase shared an email on X, stating that due to the European Union’s Markets in Crypto-Assets (MiCA) laws for stablecoins, it would be ending the USDC rewards program on December 1.

The change will affect customers in the European Economic Area (EEA), which includes the 27 EU member states, along with Iceland, Norway, and Liechtenstein. The email mentioned that eligible users would continue to accrue rewards until November 30.

Paul Berg, co-founder and CEO of crypto infrastructure provider Sablier, sarcastically wrote on X on November 28: “Very grateful to the EU for protecting me from earning a yield on my USDC holdings on Coinbase.”

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In addition, Mikko Ohtamaa, co-founder of Trading Strategy, wrote on X in a mocking response to the email, “I feel protected.”

Crypto firms remaining in the EU, such as Coinbase and USD Coin issuer Circle, must fully comply with MiCA laws by December 30. The laws, which came into effect in June 2023, introduced a wide range of strict regulations for crypto firms and stablecoin issuers, including a ban on offering interest on stablecoins or “e-money tokens.”

David Schwartz, Chief Technology Officer of Ripple Labs, responded to Berg’s post, saying, “It’s funny how often regulations prevent companies from doing things that are unarguably pro-consumer.”

Meanwhile, Tether, the issuer of the US dollar-backed stablecoin of the same name, announced on November 27 that it is withdrawing support for its euro-pegged token, citing the evolving regulatory frameworks surrounding stablecoins in the European market.

Still, a group of former Binance executives decided to enter the market with a euro-pegged stablecoin. Their company, Schuman Financial, announced on November 26 that its EURØP token would be available within the next two weeks.

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