🚨 UPDATE:

The White House has set a March 1 deadline to advance the crypto market structure bill.
A key decision has reportedly been made — and it’s unfavorable for crypto firms and stablecoin holders: no yield on idle stablecoin balances.
Today’s session was led by the White House, which presented draft legislation and directed the discussion. Major industry players including Coinbase, Ripple, and Andreessen Horowitz (a16z), along with crypto trade groups, were present. Traditional banks participated through national banking associations.
The draft text makes clear that companies cannot offer passive rewards simply for holding stablecoins — effectively ending the savings-account-style yield model.
The remaining debate centers on whether rewards could still be permitted when tied to defined activities like lending or other structured use cases.
Enforcement authority would fall to the U.S. Securities and Exchange Commission, U.S. Department of the Treasury, and Commodity Futures Trading Commission, with penalties reaching $500,000 per violation per day for non-compliance.
Banks continue to advocate for a deposit outflow study to assess whether payment stablecoins could reduce traditional bank deposits.
Despite these restrictions, the broader market structure bill is still viewed as constructive for crypto. It seeks to clarify rules around custody, exchange oversight, token classification, and the respective roles of regulators - reducing uncertainty that has held back institutional capital.
Negotiations continue this week, with a potential agreement by month’s end. If finalized, a formal framework could be ready by March 1, sending the bill to its next legislative phase.