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White House Narrows Stablecoin Rewards Fight With March 1 Deadline in Crypto Bill Talks

White House negotiators pressed banks to accept activity-linked rewards to break the impasse.

Overview

  • A third White House-led session produced what participants called constructive progress, though no deal on stablecoin rewards has been finalized.
  • Draft language under review would bar yield on idle stablecoin balances while allowing narrowly defined rewards tied to usage or transactions.
  • Enforcement authority would rest with the SEC, Treasury and CFTC, with civil penalties of up to $500,000 per violation per day to deter evasion.
  • Banking groups represented by the ABA, BPI and ICBA are weighing the proposal and seeking a study on potential deposit outflows as they cite competitive concerns.
  • The administration set a March 1 target to resolve the dispute, but Democratic demands on ethics rules, DeFi and commission appointments still complicate passage even as some industry leaders predict an April vote.