The Digital Asset Working Group of former President Donald Trump has officially released a long-anticipated report outlining key policy recommendations to guide the regulation of the cryptocurrency sector in the United States. The document includes proposals on market structure, oversight authority, banking regulations, the role of stablecoins, and specialized tax policies.
A primary focus of the report is the establishment of a transparent classification system for digital assets, distinguishing between cryptocurrencies classified as securities and those considered commodities.
The proposal suggests that oversight of the digital asset sector be divided between two main agencies: the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC). Specifically, the CFTC would oversee the crypto spot market, while the SEC would supervise tokens classified as securities.
The working group emphasizes the importance of close coordination between the SEC and CFTC for effective management of the crypto industry. Tokens with commodity characteristics would be under CFTC jurisdiction, while those with securities characteristics would fall under SEC oversight. The report asserts that a clearly defined crypto market structure will help the U.S. maintain its global leadership in digital assets.
Another notable proposal is to relax and clarify existing regulations for the banking sector, allowing financial institutions to hold digital assets and provide related cryptocurrency services to their clients.
The working group recommends that banking regulators simplify the licensing process and ensure transparency in regulatory requirements.
The report highlights the importance of stablecoins in modern payment systems and calls on the U.S. government to embrace stablecoins as a critical tool for maintaining the dominance of the U.S. dollar in the digital era.
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As predicted, the authors recommend that Congress pass the “Anti-State Surveillance Through CBDC Act,” which would prohibit all research and development of central bank digital currencies (CBDCs) within the U.S.
However, the report also acknowledges that stablecoins share many characteristics with CBDCs, particularly their ability to cooperate with law enforcement to freeze or seize assets in cases of illegal use.
Finally, the working group proposes the establishment of a distinct tax policy tailored to the unique characteristics of digital assets, including staking activities.
The report states: “Congress should enact legislation that recognizes digital assets as a new class of property, applying adjusted versions of existing capital gains tax laws to better align with the nature of digital assets.”
This report is expected to lay a solid legal foundation for the future development of the cryptocurrency industry in the United States.
