US President Donald Trump’s crypto working group reportedly urged federal regulators to clarify trading rules for digital assets as part of a broader effort to ease the adoption of new financial products, highlighting the White House’s focus on the blockchain economy after the passage of three separate crypto bills earlier this month.
The policy proposal was established in January by an executive order and introduced by the White House working group on digital asset markets led by David Sacks.
Some of the recommendations called for the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to “ensure that digital assets can be traded at the federal level immediately” by clarifying rules regarding storage, trading, registration and record-keeping.
The group also urged the elimination of “bureaucratic delays” that hinder the deployment of innovative financial products to consumers. Regarding tax policy, the proposal asks Congress to recognize cryptocurrencies as a new asset class that is subject to an amended version of existing tax rules for securities or goods.
The working group already has an influential role in shaping Washington’s evolving approach to cryptocurrency regulation. Although it does not write the law, it provides important recommendations on regulatory frameworks covering digital assets, stability, market structure, taxation, custody and oversight.
These ideas were reflected in the passage of the Genius Act, the Clear Act, and the CBDC Surveillance National Act in July. This is a policy that addresses everything from stability and market structure to central bank digital currency restrictions.
Trump signed the Genius Act on July 18th. Clarity and CBDC’s actions will be passed in the House of Representatives and will be considered by the Senate when lawmakers return from their August break.
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Related: SEC approves Crypto ETPS’s real estate creation and redemption
The US crypto industry supports positive regulations
The Trump administration’s push for cryptographic law has already improved the regulatory environment for the adoption of digital assets. After the three major crypto bills were passed in July, the Atlantic Council said: “The most likely outcome is that many companies, including banks, jump into offering crypto assets.”
That shift is already underway. Major Wall Street players, including JPMorgan, Citigroup and Bank of America, have launched a signaling plan for their plans to enter the Stablecoin market.
“For Americans, this means your bank might soon provide you with something stable and perhaps even tokenized to invest in the stock market,” the Atlantic Council added.
Industry insiders told Cointelegraph that genius, in particular, could be a major catalyst for real-world asset tokenization by removing regulatory hurdles and improving digital dollar on-ramp into a tokenized economy.
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Michael Sonnenshein, former CEO of Grayscale and president of tokenization company Securitize, told the Wall Street Journal that the genius is likely to attract market participants who are hesitant.
“For either the bystanders or asset issuers who were probably reluctant to put all the effort into the world of tokenized securities, this provides them with a bit of an extra air cover,” Sonnenshein said.
Related: Tokenized Money Market Funds Appear as the Answer to Wall Street Stubcoins
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