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US Digital Finance Working Group Proposes Regulatory Overhaul, Sidelines Trump’s Reserve Plan
A recent report from the working Group on Digital Asset Markets has put forth a series of recommendations for the United States to bolster its position in the global digital finance landscape.Notably,the proposal omits any mention of a previously suggested Bitcoin and digital asset reserve initiative championed by former President Donald Trump.
Earlier this year, Trump signed an executive order that outlined the creation of a digital asset reserve, with the stated goal of establishing the US as a leader in blockchain finance.However, wednesday’s report from the working group does not reference this specific plan.Urgent Calls for SEC and CFTC Action
The core of the document emphasizes regulatory reforms designed to streamline oversight of the cryptocurrency market and foster innovation.A key suggestion is the passage of the Digital Asset Market Clarity Act, which would empower the Commodity Futures trading Commission (CFTC) with jurisdiction over spot markets for digital assets deemed non-securities. This measure aims to address existing regulatory ambiguities.
Moreover, the report strongly urges both the Securities and Exchange Commission (SEC) and the CFTC to promptly issue clearer guidelines concerning trading, registration, custody, and recordkeeping. The group advocates for the agencies to utilize their current authority to implement these rules without delay, rather than waiting for new legislation.
The working group stated, “By implementing these recommendations, policymakers can ensure that the United States leads the blockchain revolution and ushers in the Golden Age of Crypto.”
Support for DeFi and Stablecoins, Opposition to CBDCs
Decentralized finance (DeFi) also received a positive endorsement, with the group advocating for tools such as regulatory sandboxes and safe harbors to accelerate the introduction of financial products to consumers. Stablecoins were highlighted as a important area of focus, particularly following Trump’s recent signing of the GENIUS Act. The report calls for the swift implementation of this law, positioning USD-backed stablecoins as vital for maintaining the dollar’s dominance in digital finance.
Conversely, the report firmly rejects central bank digital currencies (CBDCs), aligning with Trump’s prior support for an “Anti-CBDC Surveillance state Act” aimed at prohibiting their advancement. The group also addressed the complexities of crypto banking, calling for greater transparency regarding how institutions can obtain bank charters and seeking clarification on permissible crypto activities for banks.Regarding taxation, the report suggests classifying digital assets as a distinct asset class for federal tax purposes, with updated regulations for wash sales and the option minimum tax. It also encourages the Treasury and IRS to revise existing guidance on crypto-related activities like mining and staking.
