White House Stablecoin Draft Proposes $500,000 Daily Penalty for Yield Offerings

White House officials held a closed-door stablecoin meeting with Coinbase, Ripple, a16z, the Blockchain Association, and the Crypto Council, with banking trade groups ABA, BPI, and ICBA representing the financial sector, MSB Intel reports. Draft legislative language would prohibit stablecoin issuers from offering yield on idle balances, with enforcement authority granted to the SEC, Treasury, and CFTC to impose penalties of up to $500,000 per day per violation, according to Eleanor Terrett. Discussions now center on whether activity-linked rewards would remain permissible under the proposed framework.