A task force established by President Donald Trump has issued a comprehensive crypto report advocating for clearer regulations governing digital asset markets.
Released on Wednesday, the report calls on federal regulators to utilize their existing authority to create more definitive rules surrounding the trading of digital assets, thereby facilitating the adoption of innovative financial products.
White House Crypto Report
According to Bloomberg, the White House described the report as an essential step toward positioning the United States at the forefront of the blockchain revolution.
“By implementing these recommendations, policymakers can usher in the Golden Age of Crypto,” officials stated in a fact sheet accompanying the report from the Working Group on Digital Asset Markets.
Formed through an executive order signed by Trump in January, the task force has proposed a variety of policy measures aimed at addressing the complexities of the digital asset landscape.
Among its key recommendations is the urgent passage of the Digital Asset Market Clarity Act, which seeks to eliminate regulatory gaps by granting the Commodity Futures Trading Commission (CFTC) authority to oversee spot markets for non-security digital assets.
The report also emphasizes the need to embrace decentralized finance (DeFi) technologies as a vital component of the evolving financial ecosystem.
The report also urges both the Securities and Exchange Commission (SEC) and the CFTC to act swiftly, providing clarity on critical issues such as registration, custody, trading, and recordkeeping to enable federal-level trading of digital assets.
Bitcoin Reserve With 198,000 Seized Coins
These recommendations come on the heels of Trump’s recent signing of a congressional bill called the GENIUS Act, aimed at regulating stablecoins, marking a significant victory for the cryptocurrency industry.
This new law establishes rules for US dollar-backed stablecoins, which proponents believe will pave the way for broader integration of digital assets into the financial system.
The White House has indicated that additional details about the Strategic Bitcoin Reserve will be forthcoming. This reserve is expected to consist of approximately 198,000 Bitcoin that the government has seized from criminal cases and other proceedings.
An executive order issued earlier this year mandated that the Treasury Department retain these Bitcoin holdings, with directives to explore budget-neutral methods for acquiring more.
The report also addresses other crucial issues, including the need for clarity on Bank Secrecy Act obligations to strengthen anti-money laundering (AML) efforts.
On tax policy, it recommends that Congress classify digital assets as a new category subjected to modified tax rules applicable to securities or commodities.
Furthermore, it calls for legislation to extend wash sale rules to digital assets, preventing investors from claiming tax losses on securities if they repurchase similar assets within a designated timeframe.
Featured image from DALL-E, chart from TradingView.com
