The White House has intensified negotiations on stablecoin yield regulations as part of the ongoing CLARITY Act discussions. During a recent meeting at ETHDenver, officials, including Crypto Council Executive Director Patrick Witt, focused on draft language that would ban yields on idle stablecoin balances but permit rewards for active network participation. The session aimed to reconcile differences between crypto firms like Coinbase and Ripple and major banking groups, setting the stage for Senate Banking Committee action before March 1.
The proposed CLARITY Act language seeks to balance innovation with risk oversight by imposing civil penalties up to $500,000 daily for violations, enforceable by the SEC, Treasury, and CFTC. The meeting included representatives from the American Bankers Association and the Blockchain Association, with discussions highlighting the need to address systemic risk concerns while avoiding stifling innovation. The White House's active involvement underscores its commitment to resolving regulatory disputes and advancing legislative progress.
White House Pushes Stablecoin Yield Talks Amid CLARITY Act Discussions
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