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#WhiteHouseTalksStablecoinYields
#White_House_Discussions_on_Stablecoin_Yields
Closed meetings were held in Washington this week focusing on the legitimacy of the "yield" concept within the crypto asset ecosystem. Hosted by the White House Digital Asset Advisory Council, these sessions addressed "Stablecoin Rewards" — the main obstacle facing upcoming regulations such as the GENIUS Act and the CLARITY Act.
At the heart of the crisis lies a deep divide between the traditional banking sector and crypto platforms. Bankers argue that interest-like yields offered on stablecoins will lead to "deposit runs" and undermine financial stability. Conversely, tech giants assert that these yields are the lifeblood of innovation and liquidity.
Pursuit of Consensus and the "Transaction-Driven Yield" Framework
To achieve alignment, White House officials proposed a "intermediary" framework. According to this draft:
Prohibition of Negative Yields: Plans are in place to prevent interest-like payments on stablecoins held without movement (suspended in wallets).
Transaction-Based Rewards: Discussions are ongoing to allow yields only when linked to specific commercial activities, transactions, or liquidity provision functions.
This move by the administration aims to shift stablecoins away from being "deposit substitutes" and restore their primary role as digital payment tools. However, industry representatives continue to warn that such restrictions could weaken the U.S. in the global competition, potentially pushing capital toward regions with more flexible regulations.
Market Outlook and March Timeline
The White House’s goal to conclude these discussions by March 1 signals a strong indication that the era of "regulated yields" in crypto markets is about to begin. If consensus is reached, the legislative process for the CLARITY Act will accelerate, removing gray areas for institutional investors. Otherwise, uncertainty may remain a significant barrier to sector growth.$BTC
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