Trump White House releases long-promised crypto report
Establishing a 'taxonomy' of digital assets by clearly defining which cryptocurrencies are securities and which are commodities was the first issue outlined in the report, released on Wednesday.
According to recommendations in the document, jurisdictional oversight over digital assets should be shared between the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC), with the CFTC having oversight over spot crypto markets.
The working group recommended that the SEC and CFTC collaborate on crypto oversight. Commodity tokens should be governed by the CFTC, while other tokens deemed to be securities will be subject to SEC oversight. The authors of the report said a clearly defined crypto market structure would make the US a global leader in digital assets.
'A rational regulatory framework for digital assets is the best way to catalyze American innovation, protect investors from fraud, and keep our capital markets the envy of the world,' SEC Chair Paul Atkins wrote in response to the report. Banking regulations should be eased, clearly defined
Allowing banks the ability to custody crypto and provide digital asset services to customers was a key policy proposal outlined by the working group.
The group recommended that banking regulators streamline the process to acquire a bank charter and make the requirements more transparent.
Stablecoins and payments were also outlined in the report, touching on the need to embrace stablecoins to protect the US dollar's hegemony.
As expected, the authors urged Congress to pass the CBDC Anti-Surveillance State Act and prohibit the research and development of a central bank digital currency in the US.
However, the report highlighted many of the features that make stablecoins indistinguishable from CBDCs.
'A unique feature of stablecoins is that stablecoin issuers can coordinate with law enforcement to freeze and seize assets to counter illicit use,' the authors wrote. Establishing clear regulations around taxation
Finally, the report recommended that Congress establish a custom-tailored tax policy for cryptocurrencies that accounts for the unique features of the asset class, including staking.
'Legislation should be enacted that treats digital assets as a new class of assets subject to modified versions of tax rules applicable to securities or commodities for federal income tax purposes,' the report said.
Source: https://cointelegraph.com/news/trump-admin-releases-promised-crypto-report
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Crypto Insight
6 minutes ago
- Crypto Insight
Nomura's Laser Digital to launch regulated crypto options desk in Dubai
Laser Digital, the digital asset subsidiary of Japan's investment bank Nomura, has become the first company licensed under Dubai's Virtual Asset Regulatory Authority (VARA) pilot framework to offer regulated over-the-counter (OTC) crypto options. The 'limited license' will allow Laser Digital to offer OTC crypto options to institutional clients under strict oversight, the company said Wednesday. OTC desks allow institutions to trade large volumes of digital assets directly with counterparties, minimizing slippage and enabling more flexible pricing. These desks are typically used by hedge funds, asset managers, trading firms and other high-volume and institutional clients. The move positions Laser Digital to capitalize on Dubai's demand for regulated crypto derivatives. The company plans to offer tools for hedging, yield generation and volatility management while regulators assess market readiness and risk controls before broader expansion. Global regulation of OTC crypto options is still in the early stages A small but growing number of jurisdictions are beginning to regulate OTC crypto options desks, with Dubai and the United Kingdom leading the way. In December 2023, the investment arm of UK-based pension giant M&G invested $20 million in GFO-X, the country's first regulated Bitcoin derivatives exchange. The funding was part of a $30 million Series B round aimed at launching a Financial Conduct Authority (FCA)-regulated, centrally cleared platform for Bitcoin index futures and options. Across the EU, crypto derivatives fall under broader financial regulations like MiFID II and EMIR, which impose reporting and clearing requirements. However, most member states have yet to introduce crypto-specific OTC licensing. In the United States, the CFTC permits some institutional trading of crypto derivatives under existing laws, but there is no dedicated licensing framework for OTC crypto options desks. Dubai, by contrast, rolled out its comprehensive crypto regulatory framework in early 2023, with rulebooks covering exchanges, custodians, broker-dealers, and token issuers under VARA. UAE expands derivatives ambitions with push into digital assets The United Arab Emirates' derivatives market remains small compared to the US, but recent developments point to steady growth and diversification. The market was valued about $167 million in 2024, with a projected annual growth rate of 3.7% through 2031. Traditional platforms like the Dubai Gold & Commodities Exchange (DGCX) and OTC providers such as ADSS have long served the region's commodities and FX markets. But the UAE is now broadening its scope to include digital assets and institutional financial products. While the US still dominates global derivatives through exchanges like CME and CBOE, the UAE is carving out a niche by offering clear regulation for emerging asset classes like crypto. Source:
Khaleej Times
6 minutes ago
- Khaleej Times
Dubai student turns millionaire at 18, days before starting university in the US
At just 18, Wayne Nash D'Souza has become a millionaire, all because he decided to give it a try and buy a Dubai Duty Free ticket. "We usually buy tickets just for the fun of it when we travel, but since I was going to the US for four years, I wanted to try myself," said the Dubai-born Indian student who won $1 million at the Dubai Duty Free Millennium Millionaire draw. Wayne struck gold with ticket number 4463 in Series 510, which he purchased on July 26 at Concourse A of Dubai International Airport, just before boarding a flight to Los Angeles with his family. Speaking from the US, where he is studying aerospace engineering at the University of Illinois Urbana-Champaign, Wayne said the timing of the win couldn't have been better. "I used my dad's account because I didn't have time to set up an account since turning 18 yet. I was feeling lucky and had a gut feeling that something good is going to happen,' said Wayne. 'My sister and I insisted on buying the ticket, and Dad finally relented. I am happy I followed my instinct. This is going to help in a big way with my university fees,' he added. Wayne's family, originally from Mumbai, are frequent travellers and long-time participants in Dubai Duty Free promotions. 'I think my parents buy tickets regularly when they travel. I have been travelling since I was five, but they have probably been doing it for over 30 years,' he added. Wayne said that he wants his family to be in a good headspace and in good health, 'because that is the most important thing for us." 'My future plans with the money are undecided yet, I will do a lot of research before carefully considering investing,' he said. The call announcing the big win came at 1.30am in the US. 'I was half asleep and exhausted from a full day at Universal Studios," said Wayne. 'I didn't believe it at first, it felt surreal. I immediately thanked God and was too excited to sleep after that." The family is currently in Los Angeles to support Wayne's sister, who is pursuing a career in music. After completing their visit, they will fly to Chicago, where Wayne will begin his university journey. Wayne is the 255th Indian national to win $1 million in the Millennium Millionaire promotion since it began in 1999.
Arabian Post
38 minutes ago
- Arabian Post
Trump-Linked Bitcoin Miner Targets Nasdaq Listing
American Bitcoin Corp., a Bitcoin mining firm linked to Donald Trump, is making waves in the financial world with plans to list on the Nasdaq. The move marks a significant step for the cryptocurrency industry, highlighting how major players are seeking to establish more conventional footholds on Wall Street. Founded in 2021, American Bitcoin Corp. aims to scale up its operations significantly by tapping into public capital markets. The company has stated that it intends to raise substantial funds to expand its mining capacity and enhance its technological capabilities. According to internal reports, the firm has already secured partnerships with several high-profile players in the energy sector to support its ambitious plans. The firm's connection to Trump adds a layer of political intrigue to the listing process. Trump, who has long been associated with various business ventures, is reportedly involved in an advisory capacity, lending his brand and strategic expertise to the company's growth. His endorsement has proven valuable in garnering attention, not only among traditional investors but also among those with a keen interest in the intersection of politics and business. ADVERTISEMENT The move to list on Nasdaq comes at a time when the cryptocurrency mining industry faces increasing scrutiny over its environmental impact and energy consumption. Mining operations like those at American Bitcoin Corp. use vast amounts of energy to secure Bitcoin transactions, a process that has been criticised for contributing to carbon emissions. Despite this, the firm is positioning itself as an environmentally conscious entity, touting its use of renewable energy sources as part of its long-term sustainability plan. American Bitcoin Corp. is not alone in its ambition to go public. Several other firms in the digital asset space have followed similar paths, capitalising on the growing interest in cryptocurrency and blockchain technology. The listing process for such companies has been characterised by both enthusiasm and caution, as investors weigh the risks and rewards of entering an industry that is still in its infancy. The company's decision to enter the public markets through a direct listing rather than a traditional IPO is seen as an indication of its readiness to embrace the evolving financial landscape. A direct listing allows a company to bypass the usual underwriting process, allowing it to raise capital while potentially avoiding the costs and regulatory hurdles that come with a standard IPO. This strategy has been adopted by a growing number of firms in the tech and cryptocurrency sectors, where traditional methods of capital-raising are increasingly viewed as outdated. There is no doubt that American Bitcoin Corp.'s decision to list on Nasdaq could be a game-changer for the cryptocurrency space. If successful, the company's public debut could open the door for other mining firms and blockchain-based companies to follow suit, further integrating digital assets into the mainstream financial ecosystem. This would be a significant moment for the cryptocurrency industry, as it continues to move from the periphery of global finance into the centre stage. However, as with any venture tied to the volatile cryptocurrency market, the risks associated with American Bitcoin Corp.'s listing cannot be ignored. Bitcoin and other digital currencies have faced wild price fluctuations over the years, and while the long-term outlook for the sector remains optimistic, many investors are still cautious about committing to assets that are prone to such dramatic swings. As a result, American Bitcoin Corp. will likely face considerable scrutiny from both the public and regulatory bodies in the coming months. ADVERTISEMENT The company's plan also raises broader questions about the future of cryptocurrency mining in the United States. With growing concerns over the environmental cost of mining and the regulatory uncertainty surrounding the sector, American Bitcoin Corp. will need to navigate a complex web of challenges in order to maintain its position as a leading player in the industry. The involvement of high-profile figures like Trump could prove to be a double-edged sword. While his brand brings immediate attention to the company, it could also subject American Bitcoin Corp. to increased political scrutiny, particularly given the polarising nature of his public persona. The firm will need to strike a balance between leveraging Trump's influence and distancing itself from the controversy that often surrounds his name.
