The US President Donald Trump’s Working Group on Digital Assets published its highly anticipated report on Wednesday, detailing policy recommendations for regulating cryptocurrencies in the United States.
The report focuses on key areas: defining crypto market structures, clarifying jurisdictional oversight, updating banking regulations, promoting US dollar dominance via stablecoins, and creating tailored tax policies for digital assets.
Through the report, Trump’s administration has attempted to create a “taxonomy” of digital assets. It classifies all the characteristics of commodities and securities. This distinction aims to provide regulatory clarity and position the US as a global leader in digital asset innovation.
Rule For Jurisdictional Oversight
The report proposes shared oversight between the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC).
The CFTC would regulate spot crypto markets, while the SEC would oversee tokens classified as securities. Collaboration between the two agencies is emphasized to ensure a cohesive regulatory framework
“A rational regulatory framework for digital assets is the best way to catalyze American innovation, protect investors from fraud, and keep our capital markets the envy of the world,”
SEC Chair, Paul Atkins commented.
Advice On Banking Regulation
The Working Group recommended allowing banks to custody cryptocurrencies and offer digital asset services. It also calls for a streamlined, transparent process for obtaining bank charters to facilitate crypto integration into traditional banking systems.
US Dollar Dominance & Stablecoin Growth In The US
The report highlights the role of stablecoins in maintaining US dollar dominance in global finance.
It urges Congress to pass the CBDC Anti-Surveillance State Act to prohibit the development of a central bank digital currency (CBDC) in the US. Trump‘s administration recently passed the stablecoin bill along with other two major bills linked to financial assets regulation in the US.
Notably, the report acknowledges similarities between stablecoins and CBDCs but emphasizes that stablecoin issuers can work with law enforcement to freeze or seize assets to combat illicit activities.
Defining Taxation on Cryptocurrencies
The report advocates for a customized tax policy for cryptocurrencies, recognizing their unique characteristics, such as staking.
It recommends that Congress treat digital assets as a distinct asset class, subject to modified tax rules inspired by those for securities and commodities.
