US Crypto Regulations Align, Signal Leadership in Digital Assets
The White House’s latest crypto report calls for financial regulators to align.
A crypto advocacy group suggests the U.S. is once again positioned to lead the global cryptocurrency industry, following the White House’s recommendation published last week for financial regulators to achieve consensus on digital assets.
End to Turf Wars?
The release of the lengthy report on August 8th marks an end to a protracted jurisdictional conflict between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) regarding cryptocurrency regulation.
“The President’s Working Group report reflects [my view], and I do think the CFTC will have an important role to play when comes to the oversight of these assets, which are digital commodities — not securities,” said Ji Hun Kim, CEO of the Crypto Council for Innovation.
“We’ve had legal precedent — Bitcoin, Ether and many other digital assets are much more akin to commodities.”
Kim, who attended the White House event, stated, “the time is now” for the U.S. to assume the lead in the global crypto race.
US Race to the Crypto Capital
During the previous administration, the SEC faced criticism for its enforcement-heavy approach. The notorious “Operation Chokepoint 2.0” resulted in numerous crypto firms losing access to banking services.
Kim praised the latest report for “explicit and strong and positive” calls to clarify that banks should be allowed to engage in diverse digital asset activities.
Past regulatory uncertainty attracted many crypto companies to financial hubs like Dubai, Singapore, and Hong Kong. However, Kim argues that recent developments signal a change.
Geopolitical Currency War
Amid this regulatory clarity, crypto players are learning that different jurisdictions have varying levels of friendliness towards the industry.
The White House report aligns with President Donald Trump’s May executive order banning U.S. central bank digital currency (CBDC) development. Kim supports this, noting the potential threat to privacy posed by CBDCs.
Instead, Kim advocates for initiatives like the General-purpose Encryption and Notarization Infrastructure Utilizing Secure-distributed Systems Act (GENIUS Act), which establishes rules for stablecoins.
Project Crypto and Crypto Sprint
The SEC recently launched “Project Crypto” to provide guidance to digital asset firms and attract the industry back to the U.S.
Simultaneously, the CFTC has indicated it will move quickly to implement the report’s recommendations. Acting Chair Caroline Pham announced the onset of a “crypto sprint.”
US Crypto Clarity is Not Deregulation
While critics frame these moves as deregulation, Kim argues it represents a shift away from extreme enforcement and toward a nuanced regulatory approach.
“I don’t think this is deregulation,” Kim stated. “This is saying, ‘Hey, we recognize the unique attributes of digital assets. We want to work with the industry to make sure that we best combat illicit finance, protect consumers and investors and give the industry clear rules of the road.’”
With the SEC and CFTC increasingly aligned, the U.S. appears poised to overcome its internal regulatory challenges.
