TechFlow News, February 20: According to cryptocurrency journalist Eleanor Terrett’s disclosure this morning, the White House led the latest round of stablecoin regulatory discussions. Participants included Coinbase, Ripple, a16z, and industry organizations such as the Blockchain Association and the Crypto Council for Innovation. Banking-sector representatives included trade associations like the American Bankers Association.
Sources indicate that the draft text submitted by Patrick Witt, Executive Director of the White House Cryptocurrency Working Group, served as the central focus of discussion. The draft explicitly states that future restrictions on stablecoin rewards will be narrowly scoped; however, the functionality of earning returns on idle balances has effectively been excluded. Debate has narrowed to whether companies may offer rewards tied to specific activities. The same source expressed encouragement regarding the proposed anti-circumvention provision, which would empower the SEC, Treasury Department, and CFTC to enforce prohibitions against paying returns on idle balances—violations would incur civil penalties of $500,000 per occurrence per day. Banking representatives continue advocating for inclusion in the draft of a study on deposit outflows, assessing the potential impact of stablecoin payments on bank deposits. Negotiations are expected to reach consensus before month-end.
