The US President Donald Trump’s President’s working group on Digital Assets has published his Crypto report that has long been promised to describe policy recommendations to regulate crypto in the United States, including the structure of the cryptographic market, jurisdictional surveillance, banking regulations, promoting the hegemony of the US dollar through stablescoins and the taxation of cryptocurrencies.
Establish a “taxonomy” of digital assets by clearly defining which cryptocurrencies are titles and what the basic products were the first problem described in the report, published on Wednesday.
According to the recommendations of the document, jurisdictional monitoring on digital assets should be shared between the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC), the CFTC having surveillance in the cryptographic markets.
The working group has recommended that the SEC and the CFTC collaborate on cryptographic surveillance. The chips of raw materials should be governed by the CFTC, while other tokens considered as titles will be subject to the monitoring of the dry. The authors of the report indicate that a clearly defined cryptographic market structure would make the United States a world leader in digital assets.
“A rational regulatory framework for digital assets is the best way to catalyze American innovation, to protect investors from fraud and to keep our capital markets in the envy of the world,” wrote the president of SEC, Paul Atkins, in response to the report.
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Banking regulations must be relaxed, clearly defined
Allowing banks the opportunity to hate crypto and provide digital asset services to customers was a key policy proposal described by the working group.
The group recommended that banking regulators will ration the process to acquire a bank charter and make the requirements more transparent.
Stablecoins and payments have also been described in the report, approaching the need to adopt stablecoins to protect the hegemony of the US dollar.
As expected, the authors urged Congress to adopt the CBDC anti-surveillance State Act and to prohibit the research and development of a central bank’s digital currency in the United States.
However, the report has highlighted many features that make the CBDC stable stablecoins.
“A unique characteristic of Stablecoins is that stablecoin issuers can coordinate with the police to freeze and enter assets to counter illegal use,” wrote the authors.
Establish clear regulations around taxation
Finally, the report recommended that Congress establish a tailor-made tax policy for cryptocurrencies which explains the unique characteristics of the asset class, including implementation.
“The legislation must be adopted which deals with digital assets as a new class of assets subject to modified versions of the tax rules applicable to basic securities or products for federal tax purposes,” said the report.
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