The working group on cryptocurrency formed by US President Donald Trump has reportedly encouraged federal authorities to provide clarity on trading regulations for digital assets as part of a wider initiative to facilitate the adoption of new financial innovations, showcasing the White House’s growing interest in the blockchain sector following the enactment of three distinct crypto bills earlier this month.
The strategic suggestions were proposed by the White House’s Working Group on Digital Asset Markets, established through an executive order in January and overseen by David Sacks.
Among the suggested actions were appeals for the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) to “promptly authorize the trading of digital assets at the federal level” by clarifying guidelines regarding custody, trading, registration, and record-keeping.
The group also called for the removal of “bureaucratic obstacles” that impede the introduction of innovative financial solutions for consumers. Regarding taxation, the recommendations urge Congress to classify cryptocurrencies as a new asset category subject to amended versions of current tax regulations for either securities or commodities.
This working group has significantly influenced Washington’s shifting stance on cryptocurrency regulation. While it hasn’t crafted legislation, it has provided essential recommendations on regulatory structures applicable to digital assets, stablecoins, market dynamics, taxation, custody, and supervision.
These notions were manifested in July’s approval of the GENIUS Act, the CLARITY Act, and the Anti-CBDC Surveillance State Act — policies that tackle a range of issues from stablecoins and market frameworks to limitations on central bank digital currencies.
Trump enacted the GENIUS Act on July 18. The CLARITY and CBDC acts have been approved by the House of Representatives and are set to be reviewed by the Senate when lawmakers return from their August break.
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The Trump administration’s advocacy for crypto legislation is already enhancing the regulatory climate for digital asset adoption. In light of the passage of three significant crypto bills in July, the Atlantic Council observed: “The most probable outcome is that more companies, including banks, are likely to enter the crypto assets space.”
This transition is already in progress. Significant Wall Street firms, such as JPMorgan, Citigroup, and Bank of America, have started indicating their intentions to venture into the stablecoin arena.
“For Americans, this implies your bank may soon provide you with stablecoins and possibly even tokenized methodologies to invest in the stock market,” the Atlantic Council added.
Industry insiders informed Cointelegraph that the GENIUS Act, in particular, could serve as a significant driver for real-world asset tokenization by eliminating regulatory barriers and enhancing digital dollar on-ramps into the tokenized economy.
Michael Sonnenshein, former CEO of Grayscale and president of the tokenization firm Securitize, told The Wall Street Journal that GENIUS will probably attract reluctant market players.
“For any asset issuers that have perhaps been hesitant or reluctant to fully engage in the area of tokenized securities, this now provides them with a bit more support,” Sonnenshein noted.
Related: Tokenized money market funds arise as Wall Street’s answer to stablecoins