ECB calls for tougher EU crypto rules and wider ban on stablecoin interest - Yahoo Finance UK

The European Central Bank has urged EU lawmakers to tighten the bloc's crypto framework and to extend restrictions on paying interest on stablecoin holdings. The call, reported by Yahoo Finance UK, signals that supervisors want the rules governing digital assets to move beyond their current scope rather than remain limited to specific tokens or arrangements.

At the centre of the debate is the treatment of stablecoins — tokens designed to hold a steady value, usually by pegging to a traditional currency. Paying interest on such holdings can make them resemble bank deposits, which are subject to prudential safeguards and, in many cases, deposit insurance. Extending an interest ban would widen the gap between stablecoins and conventional savings products.

For markets, the key issue is regulatory direction rather than any single measure. Stricter rules could raise compliance costs and reshape how stablecoin issuers and exchanges operate in Europe, while also influencing how similar questions are handled elsewhere. What to watch: the European Commission's and Parliament's response, the final scope of any interest restriction, and whether other jurisdictions follow the EU's lead.