The executive decree of American president Joe Biden on the guarantee of responsible development of digital assets was largely congratulated for having recognized the cryptocurrency and the place of blockchain technology in the world and to put the United States on a path to a more complete regulation of the sector. Order, or EO, establishes a research program that includes consumer protection, financial stability, crime and national security, American leadership, the sub-bancaté and responsible development service.
With a certain number of reports being put into service for delivery during the months and no specific action prescribed, it is impossible to assess the effect that the order will finally have in the sector, or even providing for how its objectives will be achieved. However, this does not prevent certain conclusions from drawing other things that are not in the text of the OE.
Tangible effects
Senator Cynthia Lummis, a very visible supporter of Crypto, said: “I think her executive decree is lacking that the overwhelming majority of digital asset users respect the laws and try to improve our financial system.”
Lummis’s comment underlines the accent on the era on the crime, with three reports appearing in this area. The market building has received much less explicit attention. Consumer protection has been brought to the front and center with the request for contribution from the financial protection office of consumers. The Futures Trading Commission commodity apparently received a more important place in the OE than the Securities and Exchange Commission.
Aaron Cutler, partner at Hogan Lovells and former main advisor to the leader of the majority, Eric Cantor, has not read a lot of meaning in the relative quantities of ink devoted to the various regulatory agencies. Cutler told Cointelegraph:
“The executive decree distributes potential regulations, recognizing that many agencies have a role here, perhaps to the chairman’s chairman’s chairman.”
He added that Gensler “already has a lot on his plate”.
The need for regulation is immediate. An editorial of Traders magazine said that the work was a significant step forward, but that the markets need tangible development for financial institutions to engage more in space “.
The president and chief executive officer of the Future Industry Association, Walt Lukken, spoke in the same vein of the annual conference of the organization shortly after the release of the OE, saying:
“Several major crypto exchanges have bought regulated term exchanges, identifying our markets and its regulatory framework as strategically important. (…) We have resilient and prosperous industry due to well -designed regulations. ”
Lukken then highlighted a non -intermediate derivative derivative model considered by the CFTC that its organization “welcomes”.
Regulators VS legislators
The current legislative environment – with the Senate being closely divided according to the partisan parties and the Democratic Party has separated internally on its position on the crypto – reduces hopes of regulation through legislation. Senator Lummis should introduce a bipartite bill which will offer regulatory clarity and consumer protections. Representative Don Beyer presented the structure of the digital asset market and the investor protection law last summer which will do the same things if it emerges from the committee. Apparently, the agencies called in the work will produce similar results in due time.
A rare element of cryptographic bipartite legislation was the “corrective” last year in the section of the investment law and the jobs of the infrastructure which instituted declaration requirements for certain cryptographic transactions, from 2026. This provision contributes to compliance and gives clarity to tax requirements. The OE could have tackled the implementation of the existing tax legislation of the infrastructure law, although, historically, the EOs have not provided tax legislation. Instead, the presidents submit tax proposals to the congress with a budget for tax legislation.
Tax orientations are another gap in the crypto playbook. “What we have now are advice in the form of an opinion and FAQ on the IRS website, while we are waiting for future legal decisions and code sections to establish official tax advice,” said Jesse Rodriguez, an accountant certified in Kaufman Rossin. “There is no schedule available on the official directives expected.”
Treasure at IRS
The Treasury Department is one of the most frequented agencies under the OE, taking the lead on five reports, including one on regulatory gaps, and providing support to many of the other eight, including research on the Central Bank digital frames. Thus, more complete advice from the internal income service could also be in progress.
Rodriguez was stoic on tax councils. “I can’t find incredibly difficult to meet declaration requirements and to navigate income report problems,” he said. “The general framework of tax principles that apply to property can be applied in this current environment of uncertainty.”
Things can be more difficult for crypto users. The use of cryptocurrency in the retail trade will remain “an overwhelming administrative burden for brokers until there is clarity for legislation,” said Rodriguez. But “Tracker Crypto’s software applications are an excellent approach to monitoring and reporting requirements for customers.”
