White House Introduces Stablecoin Regulation Compromise in CLARITY Act Talks

The White House has intervened in the ongoing discussions over stablecoin regulation, proposing a compromise that aims to break the impasse between crypto firms and banking representatives.

The proposed CLARITY Act would introduce strict regulations on yield offerings for stablecoins, prohibiting companies from providing rewards on idle balances. Instead, rewards would be tied to user activity, such as transactions or network participation.

Regulators are considering strict anti-evasion provisions and civil penalties of up to $500,000 per violation. The proposed framework has been presented to industry leaders and banking representatives by Crypto Council for Innovation Executive Director Patrick Witt.