What Happened?
The United States recently released a report, with the core recommendation being the establishment of classification criteria for digital assets, clearly delineating the jurisdiction of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). In the future, cryptocurrencies classified as “commodities” and their spot markets will be regulated by the CFTC, while “security” tokens will fall under the purview of the SEC, aiming to eliminate the long-standing regulatory gray area.
The report advocates for the proactive promotion of privately issued stablecoins, viewing them as tools for maintaining the global dominance of the U.S. dollar. At the same time, it explicitly recommends legislation to prohibit research and development of a centrally issued Central Bank Digital Currency (CBDC) led by the U.S. government, demonstrating a clear stance of “supporting private innovation while opposing excessive government intervention.”
Although the report releases significant positive signals for the cryptocurrency industry and proposes reform directions regarding bank custody and tax systems, these are merely policy suggestions from the executive branch. Many of the report’s visions, especially the most critical market structures, will ultimately require corresponding legislation from the U.S. Congress to truly become law. Until then, the market will still face a degree of uncertainty.
Report Suggests Dividing SEC and CFTC Jurisdiction and Promoting Stablecoin Development to Strengthen Dollar’s Position
Just three days after taking office, President Trump fulfilled his campaign promise by signing an executive order to establish a “Digital Assets Working Group” composed of officials such as Treasury Secretary Scott Bessent and Director of Artificial Intelligence and Cryptocurrency David Sacks. The group officially released a detailed 166-page report today (31st), outlining a new regulatory blueprint for the U.S. cryptocurrency landscape, with hopes of reversing the previous Biden administration’s stringent policies against the blockchain industry.
This report, hailed by government officials as “the most comprehensive digital asset policy report ever,” establishes several major priority areas for the White House moving forward. Among these, the most critical recommendation is to create a clear “taxonomy” for digital assets, explicitly defining which cryptocurrencies should be considered “securities” and which should be classified as “commodities.”
The report suggests that in the future, the regulatory authority over digital assets should be shared by the SEC and the CFTC. Cryptocurrencies defined as “commodity tokens” and their spot markets will be regulated by the CFTC, while other tokens recognized as securities will continue to be overseen by the SEC.
The report points out that a clearly defined market structure will help the U.S. become a global leader in the digital asset space. In this regard, SEC Commissioner Paul Atkins stated, “A rational regulatory framework for digital assets is the best way to catalyze American innovation, protect investors from fraud, and maintain our capital markets’ leading position.”
Embracing Stablecoins, Easing Banking Regulations, and Reforming Taxation
In the realm of stablecoins and payments, the report emphasizes the importance of embracing and regulating stablecoins, viewing them as a key tool for maintaining the global dominance of the U.S. dollar.
The report urges Congress to swiftly pass relevant rules within the stablecoin legislation known as the “Genius Act.” Simultaneously, it recommends Congress pass the “CBDC Anti-Surveillance State Act,” which would prohibit any form of research and development of Central Bank Digital Currencies (CBDCs) in the U.S.
Interestingly, the report also acknowledges that stablecoins possess some functionalities similar to those of CBDCs, such as “stablecoin issuers being able to coordinate with law enforcement to freeze and seize assets to combat illegal usage.”
Additionally, the report suggests easing restrictions on the banking sector, including simplifying the process for banks to apply for special licenses and allowing banks to provide customers with digital asset services such as cryptocurrency custody.
Regarding taxation, the report calls on Congress to create a new tax policy tailored for cryptocurrencies, treating them as a completely new asset class and taking into account the unique tax implications of activities such as staking.
Challenges and Unfinished Business of U.S. Crypto Regulation
Although this report fulfills several of Trump’s campaign promises and is viewed as a significant victory for the cryptocurrency industry, many key issues remain unresolved. For instance, the specifics regarding the scale and implementation details of the national-level “Bitcoin Strategic Reserve,” promised by Trump, are not mentioned in the report. Officials stated at a press conference that the report’s focus is on the regulatory framework, and more information about the reserves will be disclosed in the future.
More importantly, the report acknowledges that the implementation of its policies is still constrained by the legislative process of Congress. While a consensus has been reached in both the House and Senate on the stablecoin legislation, the more comprehensive “Market Structure Bill,” which aims to regulate cryptocurrency issuance and exchange operations, is still under vigorous debate.
The Trump administration views the House version of the “Clarity Act” as a “beacon” for market structure legislation; however, until this bill is formally passed, many market participants will remain in a regulatory gray area concerning key aspects such as registration, custody, and trading.
Clearly, the White House’s work has just begun. This report marks a significant shift in the U.S. cryptocurrency policy, but its true effectiveness will depend on the subsequent legislation and enforcement actions by Congress and various federal agencies.
References: Fortune, CoinTelegraph