🚨 THE WHITE HOUSE HAS SET A MARCH 1 DEADLINE TO MOVE THE CRYPTO MARKET STRUCTURE BILL FORWARD.

The core issue has now been decided, and it goes against crypto firms and stablecoin holders: no yield on idle balances.
Today’s meeting was led directly by the White House, which brought draft text and controlled the discussion. Coinbase, Ripple, a16z, and crypto trade groups attended. Banks were represented through national banking associations.
The draft makes it clear that firms will not be allowed to offer rewards simply for holding stablecoins. The savings account style yield model is effectively off the table.
The debate has narrowed to whether rewards can be allowed only when tied to specific activities such as lending or other structured use.
The draft also gives the SEC, Treasury, and CFTC the power to enforce the ban on idle stablecoin yield, with penalties of up to $500,000 per violation per day.
Banks are still pushing for a deposit outflow study to examine whether payment stablecoins could reduce traditional bank deposits.
However, the broader market structure bill is still viewed as positive for crypto overall.
It aims to create clearer rules around custody, exchange oversight, token classification, and the roles of the SEC and CFTC. A formal framework would reduce regulatory uncertainty that has limited institutional participation.
For crypto firms, clarity on what is allowed and what is not could unlock more long term capital, even if certain yield models are restricted.
Talks will continue this week, and an end of month agreement is realistic.
After that, a formal framework could be ready by March 1, and the bill would move to the next stage.