Overview
- Negotiators say paying yield for simply holding stablecoins is effectively off the table after recent closed-door sessions.
- Talks now center on tightly defined incentives tied to user actions such as transactions or network participation rather than idle balances.
- Draft legislative text provided by the administration guided line-by-line discussions and narrowed gaps between banks and crypto firms.
- Proposed enforcement language would let federal regulators block evasive structures and impose civil penalties of $500,000 per violation per day.
- SEC staff guidance now lets broker-dealers count most high-quality stablecoins toward capital with a 2% discount, a change that could be revised.