How MEXC sidesteps the MiCA interest ban on stablecoins with a 7% USDT yield - The Cryptonomist

Under the European Union’s Markets in Crypto-Assets Regulation (MiCA), issuers of asset-referenced and e-money tokens are generally barred from offering interest on these stablecoins. This rule aims to prevent stablecoins from behaving like speculative savings products, preserving their role as neutral payment tools. Against that backdrop, the reported launch of a 7% USDT yield by MEXC raises a natural question: how can an exchange legally sidestep the ban?

The answer often lies in product design. Rather than labeling the return as “interest,” platforms may frame it as a loyalty or rewards program, a staking mechanism, or a separate savings product governed by different rules. By shifting the legal classification away from the stablecoin itself, the yield can be offered without technically violating MiCA’s prohibition. For traders and holders, the distinction is more than semantic.

Market relevance is twofold. First, it highlights regulatory arbitrage, where exchanges adapt to tight rules while keeping competitive yields alive. Second, it reminds investors to assess the actual legal structure behind any advertised return, especially in Europe’s post-MiCA landscape. The development signals that the region’s push for stability is already being tested by innovation.