White House Cryptocurrency Policy Report: Path to Regulatory Clarity

The long-awaited White House report on cryptocurrency policy recommendations may bring an end to years of regulatory uncertainty for digital asset companies. Many firms within the sector have struggled with unclear guidance regarding securities laws and market structure.

A task force led by US President Donald Trump released its report on Wednesday, outlining recommendations across several key areas. These include crypto market structure, banking regulations for digital asset businesses, crypto tax policies, and methods to strengthen the US dollar’s dominance. The report specifically addresses fostering stablecoin and central bank digital currency (CBDC) adoption.

Key Proposal: CFTC vs SEC Jurisdiction

A pivotal recommendation divides responsibilities between two major US regulators: the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). The proposed framework would see the CFTC gaining jurisdiction over spot cryptocurrency markets.

This division aims to address longstanding concerns about overlapping or conflicting enforcement authority.

Edwin Mata, CEO of tokenization platform Brickken, highlighted the significance of these boundary-drawing proposals. “Letting each body oversee the instruments that best align with their expertise avoids duplication and confusion,” he stated in a Cointelegraph comment. More importantly, he noted it fosters “consistent legal interpretations”, a critical factor in the United States “where case law and precedent play a dominant role.”

“This is critical in jurisdictions like the United States, where case law and precedent play a dominant role.” This clarity promotes coherent jurisprudence and allows legal opinions to be formed on solid ground, according to blockchain lawyer Edwin Mata of Brickken.

Backdrop: Ripple Lawsuit Resolution

The release of the report comes over two months after the resolution of a defining legal dispute in the crypto sphere: the SEC’s protracted lawsuit against Ripple Labs regarding its XRP token burnings all. In December 2020, the SEC filed a suit against Ripple, alleging unregistered securities sales totalling $1.3 billion.

On March 19, days before the report’s release, Ripple CEO Brad Garlinghouse announced that Ripple had prevailed upon the Supreme Court, which had vacated the lower court’s ruling concerning non-party funds and dropped the appeal. Garlinghouse termed this outcome a “resounding victory” for Ripple and the broader crypto industry.

Previously, in July 2023, Judge Analisa Torres ruled that XRP was not a security in typical consumer sales, but constituted one when sold to institutional investors, finding against Ripple’s argument. As part of the resolution announced in late April 2024, a jury found primarily against Ripple, and a Pennsylvania district court judge ordered a $125 million fine against the company for contempt, to be held in escrow pending further appeals. A joint motion to release the funds was filed by both parties.

Industry Concerns Remain

Crypto analysts at Bitfinex cautiously viewed the White House recommendations as a positive step. “While this advances Trump’s agenda by urging ‘same risk, same rules’ to close oversight gaps and legitimize crypto via legislation like the CLARITY Act, lingering concerns persist,” they observed.

The benefits must be weighed against the report’s push for intensified SEC enforcement against non-compliant firms, the absence of details on a promised US Bitcoin-backed digital dollar project (SWF/SCETC proposal), and potential fractures within the crypto community regarding regulatory stringency.

The report faces continued industry demands, particularly calls for relaxed banking and custody rules for crypto service providers. Analysts noted speculation these recommendations are being actively worked on.

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