The US President Donald Trump’s Working Group on Digital Property launched its long-promised crypto report outlining coverage suggestions for regulating crypto in the US, together with crypto market construction, jurisdictional oversight, banking rules, selling US greenback hegemony by stablecoins and taxation of cryptocurrencies.
Establishing a “taxonomy” of digital assets by clearly defining which cryptocurrencies are securities and that are commodities was the primary difficulty outlined within the report, launched on Wednesday.
Based on suggestions within the doc, jurisdictional oversight over digital property ought to be shared between the Commodity Futures Buying and selling Fee (CFTC) and the Securities and Change Fee (SEC), with the CFTC having oversight over spot crypto markets.
The working group advisable that the SEC and CFTC collaborate on crypto oversight. Commodity tokens ought to be ruled by the CFTC, whereas different tokens deemed to be securities will likely be topic to SEC oversight. The authors of the report stated a clearly outlined crypto market construction would make the US a world chief in digital property.
“A rational regulatory framework for digital property is one of the best ways to catalyze American innovation, defend traders from fraud, and maintain our capital markets the envy of the world,” SEC Chair Paul Atkins wrote in response to the report.
Associated: Trump’s crypto working group pushes for clearer rules as adoption grows
Banking rules ought to be eased, clearly outlined
Permitting banks the flexibility to custody crypto and supply digital asset companies to clients was a key coverage proposal outlined by the working group.
The group advisable that banking regulators streamline the method to acquire a bank charter and make the necessities extra clear.
Stablecoins and funds had been additionally outlined within the report, pertaining to the necessity to embrace stablecoins to protect the US dollar’s hegemony.
As anticipated, the authors urged Congress to go the CBDC Anti-Surveillance State Act and prohibit the analysis and growth of a central financial institution digital foreign money within the US.
Nevertheless, the report highlighted lots of the options that make stablecoins indistinguishable from CBDCs.
“A singular function of stablecoins is that stablecoin issuers can coordinate with regulation enforcement to freeze and seize property to counter illicit use,” the authors wrote.
Establishing clear rules round taxation
Lastly, the report advisable that Congress set up a custom-tailored tax policy for cryptocurrencies that accounts for the distinctive options of the asset class, together with staking.
“Laws ought to be enacted that treats digital property as a brand new class of property topic to modified variations of tax guidelines relevant to securities or commodities for federal earnings tax functions,” the report stated.
Journal: SEC’s U-turn on crypto leaves key questions unanswered
