White House Takes Lead in Stablecoin Talks: Rewards Allowed, But Penalties Proposed for Yield on Idle Balances.

Per Eleanor Terrett's report, a new draft from White House Crypto Council Exec Patrick Witt narrows restrictions to "idle" stablecoin yields—effectively banning passive earnings—while permitting activity-linked rewards.

Enforcement powers go to SEC, CFTC, and Treasury, with civil penalties up to **$500,000 per violation per day** for evasion.

This shift, driven by the White House (with Coinbase, Ripple, a16z reps attending), puts exchanges like Coinbase's USDC yield revenue at risk.

Talks described as constructive; banks push for deposit impact study amid competitive concerns.

Ripple CEO sees 80-90% chance CLARITY Act passes by April. Crypto sentiment remains bearish on major stablecoins and BTC.#BTC $BTC

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