Finally seeing the dawn of a clear bill! During the third meeting on the clarity bill at the White House yesterday, Patrick Witt, the White House crypto policy advisor, presented a draft text as the basis for discussion: explicitly supporting limited rewards for stablecoins but prohibiting interest-like earnings from simply holding them. Permitted rewards are restricted to transaction/activity-based rewards (e.g., lending or other clearly defined activities). This seems to be a compromise from the White House to pressure banks: allowing the crypto side to retain some reward space while protecting the banking deposit business. The draft also includes anti-evasion clauses, granting the SEC, Treasury, and CFTC enforcement authority, with violations subject to fines of up to $500,000 per day. Idle balance earnings are out, but activity-based rewards still have room. The White House’s compromise terms show their determination to push forward—addressing the banking sector’s demand to retain deposits while considering Coinbase’s stance on keeping interest payments to users (though they’ve had to make concessions). At this point, if Coinbase and the banking industry strongly oppose, it might be hard to justify. The backdoor likely leaves room for further discussions on specific details. Crypto industry representatives like Coinbase, Ripple, and a16z attended the meeting. Statements from various parties suggest the talks were "highly cooperative," with only a few issues left to resolve. Banks, represented by associations, are still internally debating whether to accept the limited rewards proposal. Ripple CEO Brad Garlinghouse predicts a 90% chance of passage, and market probabilities on Polymarket/Kalshi have surged from ~56-60% a few days ago to 78-85%. This seems like a step forward for money moving in a positive direction. The White House’s deadline is set for March 1, and if finalized by the end of the month, the clarity bill could advance quickly, becoming a major victory for the Trump administration’s crypto agenda and further reducing regulatory uncertainty for the crypto industry.