So now the EU wants to go after stablecoin yields too?

Was reading about the European central banks pushing for tighter rules on stablecoin rewards.

MiCA already restricts issuers and exchanges from paying interest on stablecoins. Now they want to cover indirect returns through things like lending and staking as well.

I get why regulators are concerned. If people start treating stablecoins like savings accounts, that's a different kind of risk.

But here's what I'm wondering.

Holding USDC in a wallet and lending USDC to someone through a protocol aren't really the same thing, right?

One is basically holding a dollar-pegged token. The other involves taking on additional risk to earn a return.

So why should both be treated the same just because the asset involved is a stablecoin?

Not saying every yield product is safe. Plenty aren't.

I'd just rather see clear rules about where the yield comes from and what users are risking instead of making all stablecoin rewards sound like one big problem.

Should the EU Ban Stablecoin Yields, Including Lending and Staking Rewards?