White House officials convened a third meeting this month with crypto and banking representatives as negotiations intensify over stablecoin yield restrictions and broader market structure reforms.
The session focused on narrowing disagreements over whether stablecoin issuers should be allowed to offer rewards tied to certain activities, with an end-of-month deadline set to finalise agreed legislative language.
“Yesterday’s meeting was a big step forward. We’re close. Provided we continue to have good faith engagement from both sides on this issue, I fully expect we will meet our deadline,”
Said Patrick Witt, executive director of the White House Crypto Council.
Ripple chief legal officer, Stuart Alderoty said:
“Many thanks to Patrick Witt for today’s meeting and for his continued commitment to get CLARITY across the finish line. We rolled up our sleeves and went through specific language today. Work will continue in the coming days.”
Coinbase chief legal officer Paul Grewal described the discussions as constructive, while chief executive Brian Armstrong wrote, “Market structure is making great progress, and I believe we’re going to reach a win-win-win outcome.”
Earlier talks on 10 February ended without agreement after banking representatives proposed strict “Yield and Interest Prohibition Principles,” prompting further negotiations that reportedly extended beyond two hours with officials collecting participants’ phones to encourage focused dialogue.
Draft provisions under consideration could empower the Securities and Exchange Commission, the Treasury Department and the Commodity Futures Trading Commission to impose civil penalties of up to $500,000 per violation per day for paying yield on idle stablecoin balances, as discussions continue ahead of the deadline.