Coinbase will discontinue its USDC Rewards program for customers in the European Economic Area (EEA) effective December 1, 2024, to comply with the European Union's Markets in Crypto-Assets (MiCA) regulations. This decision follows the implementation of stricter rules that classify stablecoins as electronic money tokens (EMTs), which prohibit interest-earning features for such assets. Affected customers will receive their final rewards payments within ten business days of December. Until the end of November, they can still earn rewards on their USDC holdings. Reactions to the announcement have been mixed, with industry figures expressing frustration and sarcasm toward the EU's regulatory approach, which they feel limits consumer benefits. Other stablecoin issuers, like Tether, are also adjusting their operations in response to these new regulations, with some stopping the minting of euro-backed tokens altogether. Coinbase had previously signaled its intention to ensure compliance with MiCA ahead of its full enforcement on December 30, 2024.

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