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White House crypto meeting dug into stablecoin yield debate on market structure bill

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White House crypto meeting dug into stablecoin yield debate on market structure bill

A White House meeting meant to thaw the ice on the crypto market structure bill cracked into the controversial topic of stablecoin yield, with participants saying they made progress on the negotiation as the legislation is still struggling to make headway in the U.S. Senate.

The Monday gathering, led by President Donald Trump’s crypto czar, David Sacks, was aimed at some of the sticking points over the legislation, including whether stablecoins should be associated with yield and rewards. Policy experts from the crypto industry and Wall Street banks gathered in the White House’s Diplomatic Reception Room for more than two hours to discuss how to overhaul the stickiest provisions of the bill, according to people familiar with the talks.

The talks will continue, the people said, so the difficult negotiation hasn’t driven participants from the table.

Cody Carbone, who leads the Digital Chamber that lobbies for crypto policy in Washington, called the meeting “exactly the kind of progress needed to find a resolution to one of the biggest issues blocking next steps in market structure legislative progress.”

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“Inaction is not an option, and we are committed to rolling up our sleeves and doing the hard work to ensure legislative progress does not punish innovators or consumers who see digital assets as a foundation for their financial future,” Carbone said in a statement just after the meeting.

Legislation to govern the U.S. crypto markets has been moving through the congressional process, having passed the House of Representatives last year and cleared one of two necessary Senate committees last week. What remains is still a complicated gauntlet of legislative steps, including advancing through the Senate Banking Committee. It’s that committee’s work that first highlighted the several points of separation in the multi-party negotiation that involves Republican and Democratic lawmakers, the crypto industry, bankers and the White House.

The stablecoin yield debate is in contention between the digital assets space and traditional bankers, who argue that such yield could catastrophically compete with the deposits business at the core of U.S. banking and credit. But Democrats also held out other demands, including anti-corruption provisions targeted at Trump’s crypto businesses, a requirement that the Commodity Futures Trading Commission be fully staffed by commissioners from both parties and more stringent illicit-finance protections to prevent the sector from aiding in criminality.

The Democrats’ push for an ethics provision to block senior government officials from cashing in on crypto may be further complicated by a report from the Wall Street Journal that a United Arab Emirates’ intelligence chief secretly bought almost half of the Trump-tied World Liberty Financial Inc.

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As the White House hosted the Monday meeting, the federal government had once again slid into a partial shutdown over Congress’ inability to get a funding plan approved. That raises questions about how much work White House and congressional staff can accomplish on these points while the government’s doors are supposed to be closed. A currently negotiated plan is reportedly coming to a head on Tuesday that could re-open the government while leaving an opening to debate the Department of Homeland Security spending separately.

Trump urged House lawmakers to sign off on getting the government re-opened without further changes to the bill that would do so.

“We need to get the Government open, and I hope all Republicans and Democrats will join me in supporting this Bill, and send it to my desk WITHOUT DELAY,” the president said in a social media post. “There can be NO CHANGES at this time.”

Read More: Crypto bill clears U.S. Senate milestone despite Democrat opposition

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Crypto World

Polymarket Grabs 97% of Onchain Prediction Market Fees After Overhaul

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Fees, DeFi, Trading, Polymarket, Prediction Markets

Polymarket has become one of decentralized finance’s most profitable protocols after a pricing overhaul, generating about $7.1 million in fees in the first week of the second quarter, according to new data.

That pace implies an annualized run rate of roughly $365 million if sustained, placing the onchain prediction platform among the industry’s top fee generators and giving it nearly all of the sector’s revenue, at 96.8% of onchain prediction market fees.

The gains follow a March 30 pricing change that pushed daily fees to around $1 million, a level that has largely held as trading activity remains elevated, data from DeFiLlama shows, and make Polymarket the eighth-largest DeFi protocol by fees, along with stablecoin issuers Circle (USDC) and Tether (USDT) and decentralized derivatives exchange Hyperliquid.

Onchain metrics also show Polymarket’s footprint beyond fees. Total value locked on the platform was over $432 million on Tuesday, according to DeFiLlama data, close to its November 2024 US election high of around $510 million, as its share of onchain prediction market revenue rises.

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Fees, DeFi, Trading, Polymarket, Prediction Markets
Fees market share. Source: Dune

ICE backs Polymarket, but regulation uncertainty remains

Polymarket’s fee engine has started to attract more mainstream partners. Intercontinental Exchange, the owner of the New York Stock Exchange, deepened its bet on Polymarket on March 27, completing a $600 million cash investment as part of a broader $2 billion commitment that will see ICE distribute the platform’s event-driven data to institutional clients. 

Related: Iran war bets turn prediction markets into real-time macro radar: Sygnum

At the infrastructure level, Polymarket announced Monday that it is replacing its bridged USDC.e collateral on Polygon with a new 1:1 USDC-backed token called Polymarket USD, which will take over as trading collateral as part of the platform’s April exchange upgrade, as it continues to spin up highly-traded markets on the US-Iran conflict, oil, inflation and equities indices.

Despite its growing revenue, regulation remains a risk. Prediction markets continue to face pushback from some US states and gambling regulators elsewhere, including recent moves by Hungary and Portugal to order local blocking, and Argentina issuing a countrywide block on Polymarket, arguing that the platform operates as an unlicensed gambling site.

Magazine: Bitcoin’s ‘biggest bull catalyst’ would be Saylor’s liquidation — Santiment founder

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