The United States releases a digital asset policy report providing five regulatory guidelines for the encryption industry.

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The U.S. government has released a digital asset policy report, providing regulatory guidance for the encryption industry.

In January this year, Trump called for the establishment of a digital asset market working group to submit a report outlining recommendations for the regulation of digital assets. This much-anticipated report has finally been released. The government led by Trump published this detailed digital asset policy report on Wednesday (July 30), which spans 166 pages and repeatedly mentions keywords such as encryption, cryptocurrency, Bitcoin, DeFi, and Ethereum.

The report outlines a comprehensive regulatory roadmap for cryptocurrencies, presenting policy recommendations involving multiple crypto-related areas. It can be primarily divided into five major categories:

  1. Position the United States as a leader in the digital asset market

It is recommended that Congress enact relevant legislation based on the bipartisan unanimous vote in the House of Representatives to pass the CLARITY Act:

  • Authorize the CFTC to regulate the spot market for non-security digital assets, eliminating regulatory gaps.
  • Embrace DeFi technology and recognize its potential to integrate into mainstream finance.

The SEC and CFTC should utilize their existing powers:

  • Launch digital asset trading at the federal level, clarifying issues such as registration and custody.
  • Use tools such as safe harbors and regulatory sandboxes to promote the development of innovative financial products
  1. Modern Digital Asset Banking Regulation

The government has terminated "Operation Kill Switch 2.0" and is committed to ending regulatory measures that refuse to provide banking services to the digital asset industry. It is recommended that regulatory agencies take additional measures:

  • Restart the cryptocurrency innovation work, clarify the activities that banks are allowed to engage in regarding custody, tokenization, etc.
  • Improve the transparency of the process for obtaining a banking license or reserve bank master account.
  • Ensure that bank capital rules are consistent with the actual risks of digital assets.
  1. Strengthening the status of the US dollar
  • The Ministry of Finance and banking institutions should faithfully and promptly implement the GENIUS Act.
  • Congress should take action to codify the provisions of the executive order that prohibits the central bank digital currency in the United States.
  1. Combatting Illegal Finance in the Digital Age
  • The Ministry of Finance and relevant regulatory agencies should clarify the obligations and reporting requirements of the Bank Secrecy Act.
  • Congress should emphasize the importance of self-custody and clarify the anti-money laundering/anti-terrorist financing obligations of participants in the DeFi ecosystem.
  • Regulatory authorities should prevent the abuse of power against the lawful activities of law-abiding citizens and protect citizens' privacy.
  1. Ensure the fairness and predictability of digital asset taxation
  • The Department of the Treasury and the Internal Revenue Service should issue relevant guidelines to alleviate the burden on taxpayers.
  • Review the previously published guidelines on the tax treatment of activities such as mining and staking.
  • Congress enacts legislation to classify digital assets as a new asset class, amending relevant tax rules.

After the report was released, there was a general consensus in the industry that this was a positive signal for Trump's encryption agenda direction. Ji Kim, CEO of the Crypto Innovation Council, stated that the report marks a collaborative effort by the government to ensure that the United States maintains its leading position in the golden era of cryptocurrency. Rebecca Rettig from Jito Labs also expressed her approval, believing that this roadmap provides guidance for achieving regulatory transparency in the U.S. crypto industry.

However, despite the report being seen as a "significant victory" for the encryption industry, it did not disclose new initiatives or provide in-depth explanations of specific policy measures. Some issues remain unresolved, such as the future scale of federal government cryptocurrency reserves. In addition, the report acknowledges that Congress has yet to pass the Market Structure bill, which imposes many restrictions on the industry.

Although this report may "fall short of expectations", U.S. officials claim they have laid a solid foundation for the development of this sector. In the future, as policies become clearer and are implemented, the regulatory environment of the encryption industry is expected to improve further.

TRUMP1.97%
DEFI6.84%
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FlashLoanLarryvip
· 18h ago
Donald Trump finally did something.
View OriginalReply0
StopLossMastervip
· 18h ago
Regulatory complacency is optimistic
View OriginalReply0
BlockchainFriesvip
· 18h ago
Welcoming a new era of regulation
View OriginalReply0
GasFeeCriervip
· 19h ago
Should have taken care of it earlier.
View OriginalReply0
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