White House Plans have been made to welcome the “New American Golden Age” and use cryptocurrencies in its center.
In a 160-page report released Wednesday, White House representatives outlined a series of recommendations from federal officials who set out to establish a legal framework and set of regulatory rules for companies dealing with crypto assets in the United States.
If lawmakers and regulators take action, these recommendations will effectively give away the cryptocurrency industry (spending hundreds of millions of dollars affecting the 2024 Congressional race), making it important to call during the Biden administration.
In other projects, the White House advised Congress to enact laws to resolve long-term debates about the classification of crypto assets and to embrace the concept of decentralized finance; meanwhile, financial regulators use secure ports and regulatory sandboxes to “allow innovative financial products to attract consumers without bureaucratic delays”; regulators allow banks to process crypto assets and prevent further discrimination against crypto businesses.
“Digital assets and blockchain technologies can not only revolutionize the U.S. financial system, but also revolutionize across ownership and governance economic systems,” the report said. “American entrepreneurs who use these technologies to pioneer new industries should be clear about the efforts and the policies that compliment them.”
The report, described by the leaders of the Digital Chamber of Commerce, a crypto trade body, as a “regulatory Bible”, was formed by a working group established shortly after President Donald Trump returned to the White House in January. Its members include White House cryptocurrency and AI Czar David Sacks, whose venture capital firm has invested in several crypto startups, Commerce Secretary Howard Lutnick, until he took office, led financial institution Cantor Fitzgerald, which serves Tether, the world’s largest Stablecoin provider.
Many working groups’ recommendations have taken action. In mid-July, the Clarity Act was a legislation that would establish a classification of crypto assets and allocate regulatory jurisdiction between the Securities and Exchange Commission and the Commodity Futures Trading Commission, passing the House. The same week, Trump signed a stable-focused bill.
“A few years ago, the cryptocurrency guys weren’t great at playing lobbying games,” said Charley Cooper, chief operating officer of crypto company Ava Labs, a former COO of CFTC. But in Trump, he said: “The cryptocurrency industry saw an ally. Even though after getting there, the too late convert relies on cryptocurrency, the door was open.”
The task force report directly responds to prominent claims in the cryptocurrency community that the Biden administration is trying to smash the industry through a campaign of “law enforcement regulation”. It even borrows terms (such as the Chokepoint 2.0 Action), which is formulated by the industry to describe allegedly purported discrimination.
“The Biden administration’s approach to cryptocurrencies is an over-demarcation of regulations that resists the U.S. tradition of adopting new technologies,” the report said. “The Trump presidential election marks the end of this mistake. It is a difficult fork for the U.S., the end of a series of bad policy decisions, favoring updates, and better practices.”
