Stellar protocol meeting discussing CAP-29 and CAP-35 proposals to improve regulated asset support. CAP-29 simplifies trust line authorization flags, while CAP-35 introduces asset clawback functionality for regulatory compliance and fraud recovery.
The first Stellar protocol meeting of 2021 focused on two core advancement proposals (CAPs) designed to better support regulated assets on Stellar. CAP-29 addresses inconsistencies in the Allow Trust operation by allowing issuers to authorize trust lines and revoke assets even without the Auth Required flag set, enabling deny-list functionality. CAP-35 introduces a clawback mechanism allowing issuers to recover assets for regulatory compliance, fraud recovery, and key loss scenarios. The proposal adds new account and trust line flags, claimable balance flags, and two new operations. Key discussions covered immutability of clawback capability, flag design choices, and implementation details. The team agreed to keep clawback and revocable as separate flags with a constraint requiring both to be set together, move XDR extensions to structure tops, and create a common asset code data structure.