{"id":91041,"date":"2026-02-23T19:53:44","date_gmt":"2026-02-23T19:53:44","guid":{"rendered":"https:\/\/freakcryptos.com\/index.php\/2026\/02\/23\/white-house-proposes-stablecoin-rewards-compromise-as-clarity-act-odds-drop-to-44\/"},"modified":"2026-02-23T19:53:44","modified_gmt":"2026-02-23T19:53:44","slug":"white-house-proposes-stablecoin-rewards-compromise-as-clarity-act-odds-drop-to-44","status":"publish","type":"post","link":"https:\/\/freakcryptos.com\/index.php\/2026\/02\/23\/white-house-proposes-stablecoin-rewards-compromise-as-clarity-act-odds-drop-to-44\/","title":{"rendered":"White House Proposes Stablecoin Rewards Compromise as CLARITY Act Odds Drop to 44%"},"content":{"rendered":"


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The White House moved to break the stablecoin deadlock final Friday at ETHDenver, proposing that holders can not earn yields on idle cash beneath draft language tied to the CLARITY Act. Crypto Council Executive Director Patrick Witt outlined the compromise to trade and financial institution leaders after a closed-door session. The talks purpose to resolve the rewards dispute by March 1 and restart Senate motion.<\/span><\/p>\n

CLARITY Act Talks Narrow Stablecoin Yield Provision<\/b><\/h2>\n

As per Crypto in America<\/a>, the core compromise for the CLARITY Act is that corporations wouldn’t provide yield on idle stablecoin balances. That goal, lengthy pursued by crypto corporations, is now successfully off the desk. Instead, negotiators narrowed the talk to rewards tied to exercise, such as transactions or community participation.<\/span><\/p>\n

According to Witt, the hole between banks and crypto corporations \u201cshrunk considerably\u201d after final week\u2019s assembly. The <\/span>White House digital assets adviser<\/span><\/a> beforehand stated that the current closed-door assembly was a giant step ahead for stablecoin yield.\u00a0<\/span><\/p>\n

The draft addressed issues raised in a current banking framework on stablecoin yield limits. Notably, any restrictions can be narrowly scoped. A banking supply stated the proposed anti-evasion language would permit the SEC, Treasury, and CFTC to implement the idle-yield ban. Civil penalties may attain $500,000 per violation, per day.<\/span><\/p>\n

Witt stated ethics issues tied to President Donald Trump\u2019s household crypto dealings stay beneath dialogue. However, he described them as much less central than the CLARITY Act rewards concern. Once negotiators finalize language, the Senate Banking Committee may reschedule its postponed January 15 markup. Chairman Tim Scott will resolve the timing.<\/span><\/p>\n

Industry and Bank Groups Face Off<\/b><\/h2>\n

The session included representatives from Coinbase, Ripple, and Andreessen Horowitz. Last week, Coinbase Chief Legal Officer Paul Grewal stated <\/span>discussions around the crypto bill<\/a> remained constructive and cooperative<\/span>. Despite this, Polymarket odds on Clarity Act odds of passing fell to as low as 44% however have since recovered to 52% as the March 1 deadline approaches with no significant motion on a compromise.<\/span><\/p>\n

\"\"\"\"Source: Polymarket<\/a><\/p>\n

Trade teams Blockchain Association and Crypto Council for Innovation additionally attended. Bank views got here from the American Bankers Association, Bank Policy Institute, and Independent Community Bankers of America.<\/span><\/p>\n

As Coingape reported, the third White House meeting<\/a> on the CLARITY Act was held on Thursday, with Ripple, Coinbase, and financial institution representatives attending. Now, banks argue that rewards may pull deposits from conventional establishments and lift systemic danger. Meanwhile, crypto corporations warn that broad restrictions would curb innovation and favor incumbents. The White House inserted itself extra immediately than in prior conferences to bridge that divide.<\/span><\/p>\n

Witt advised Crypto In America, officers search a decision by March 1 for the CLARITY Act. He stated good-faith engagement may unlock quicker motion. Much reconciliation between stakeholders is already taking place in parallel.<\/span><\/p>\n<\/p><\/div>\n


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The White House moved to break the stablecoin deadlock final Friday at ETHDenver, proposing that holders can not earn yields on idle cash beneath draft language tied to the CLARITY Act. Crypto Council Executive Director Patrick Witt outlined the compromise to trade and financial institution leaders after a closed-door session. The talks purpose to resolve […]<\/p>\n","protected":false},"author":1,"featured_media":90797,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[734,478,14801,1705,513,4426,639,3850,545,512],"class_list":{"0":"post-91041","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-regulation","8":"tag-act","9":"tag-clarity","10":"tag-compromise","11":"tag-drop","12":"tag-house","13":"tag-odds","14":"tag-proposes","15":"tag-rewards","16":"tag-stablecoin","17":"tag-white"},"_links":{"self":[{"href":"https:\/\/freakcryptos.com\/index.php\/wp-json\/wp\/v2\/posts\/91041","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/freakcryptos.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/freakcryptos.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/freakcryptos.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/freakcryptos.com\/index.php\/wp-json\/wp\/v2\/comments?post=91041"}],"version-history":[{"count":1,"href":"https:\/\/freakcryptos.com\/index.php\/wp-json\/wp\/v2\/posts\/91041\/revisions"}],"predecessor-version":[{"id":91042,"href":"https:\/\/freakcryptos.com\/index.php\/wp-json\/wp\/v2\/posts\/91041\/revisions\/91042"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/freakcryptos.com\/index.php\/wp-json\/wp\/v2\/media\/90797"}],"wp:attachment":[{"href":"https:\/\/freakcryptos.com\/index.php\/wp-json\/wp\/v2\/media?parent=91041"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/freakcryptos.com\/index.php\/wp-json\/wp\/v2\/categories?post=91041"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/freakcryptos.com\/index.php\/wp-json\/wp\/v2\/tags?post=91041"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}