President Donald Trump is laying the groundwork to potentially embrace cryptocurrency
The White House Working Group on Digital Assets has released its long-awaited report, offering a comprehensive set of recommendations for the regulation of cryptocurrencies in the United States. The document, which outlines proposed policies on crypto market structure, jurisdictional oversight, and banking regulations, is aimed at establishing a more structured and secure environment for digital assets.
One of the key recommendations in the report is the creation of a clear “taxonomy” of digital assets, distinguishing between cryptocurrencies that are considered securities and those that are classified as commodities. The report suggests that the Commodity Futures Trading Commission (CFTC) should oversee spot crypto markets, while the Securities and Exchange Commission (SEC) would regulate cryptocurrencies classified as securities. This division of responsibility is seen as crucial to defining a more transparent and functional regulatory framework.
The working group also advocates for streamlined banking regulations, particularly in regard to digital asset custody. The proposal includes allowing banks to hold cryptocurrencies and offer related services to customers, provided the process for acquiring a bank charter is simplified and made more transparent.
The report also delves into the role of stablecoins, suggesting that they could help preserve the US dollar’s dominance in the global financial system. While stablecoins share several features with central bank digital currencies (CBDCs), the report calls for a prohibition on the development of a CBDC in the US, citing concerns over privacy and surveillance. The authors highlighted that stablecoin issuers have the ability to cooperate with law enforcement to combat illegal activities, further underscoring their potential role in maintaining financial security.
Lastly, the report urges Congress to implement tax policies tailored to digital assets, including provisions for staking. The recommended tax treatment would modify existing rules for securities or commodities to accommodate the unique characteristics of cryptocurrencies.
This report marks a significant step in shaping the future regulatory landscape for digital assets in the US, with the potential to enhance both innovation and investor protection.
