White House Sets March 1 Target for CLARITY Act; Draft Bars Yield on Idle Stablecoin Balances

The White House has set a March 1 deadline to advance the CLARITY Act crypto market structure bill, with a draft agreement confirming that idle stablecoin balances cannot earn yield, participants in this week's meetings said. Lawmakers, regulators, and industry representatives including Coinbase, Ripple, a16z, trade groups, and national banking associations reviewed language that allows activity-based rewards while placing enforcement authority with the SEC, Treasury, and CFTC, which could impose fines of up to $500,000 per day for violations. The talks also covered a potential deposit outflow study for payment stablecoins and broader rules on custody, exchange supervision, token classification, and agency roles, with legal officers from Coinbase and Ripple describing the session as productive. Ripple CEO Brad Garlinghouse said he sees a 90% chance the bill will pass by the end of April, while Treasury Secretary Scott Bessent urged Congress to complete the legislation this spring, with negotiations expected to continue over the next week to finalize a framework by March 1.