A task force established by President Donald Trump has issued a comprehensive crypto report advocating for clearer regulations governing digital asset markets.
“By implementing these recommendations, policymakers can usher in the Golden Age of Crypto,” officials stated in a fact sheet accompanying the report from the Working Group on Digital Asset Markets.
Among its key recommendations is the urgent passage of the Digital Asset Market Clarity Act, which seeks to eliminate regulatory gaps by granting the Commodity Futures Trading Commission (CFTC) authority to oversee spot markets for non-security digital assets.
The report also emphasizes the need to embrace decentralized finance (DeFi) technologies as a vital component of the evolving financial ecosystem.
The report also urges both the Securities and Exchange Commission (SEC) and the CFTC to act swiftly, providing clarity on critical issues such as registration, custody, trading, and recordkeeping to enable federal-level trading of digital assets.
This new law establishes rules for US dollar-backed stablecoins, which proponents believe will pave the way for broader integration of digital assets into the financial system.
An executive order issued earlier this year mandated that the Treasury Department retain these Bitcoin holdings, with directives to explore budget-neutral methods for acquiring more.
The report also addresses other crucial issues, including the need for clarity on Bank Secrecy Act obligations to strengthen anti-money laundering (AML) efforts.
On tax policy, it recommends that Congress classify digital assets as a new category subjected to modified tax rules applicable to securities or commodities.
Furthermore, it calls for legislation to extend wash sale rules to digital assets, preventing investors from claiming tax losses on securities if they repurchase similar assets within a designated timeframe.
Featured image from DALL-E, chart from TradingView.com
