(The Epoch Times)—The White House released a cryptocurrency report on July 30 that outlines core recommendations for regulators to help establish a framework that fosters U.S. innovation in the digital assets sector.
The report, developed by a working group formed by President Donald Trump and chaired by his special adviser for AI and cryptocurrency, David Sacks, outlines legislative recommendations aimed at making crypto “a hallmark of the new American Golden Age.”
“American citizens and businesses should be able to own digital assets and use blockchain technologies for lawful purposes without fear of prosecution,” the report stated. “Likewise, American entrepreneurs and software developers should have the liberty, and regulatory certainty, to upgrade all sectors of our economy using these technologies.”
The group recommended that Congress enact legislation affirming people’s right to retain custody of their digital assets without having to rely on financial intermediaries.
It said the Commodity Futures Trading Commission (CFTC) should be granted clear authority to regulate spot markets in non-security digital assets and allow registrants of market regulators to operate across multiple business lines “under the most efficient licensing structure possible.”
The group also called on the Securities and Exchange Commission (SEC) and CFTC to use their existing authorities to facilitate the trading of digital assets at the federal level, according to the report.
The report recommended that policymakers embrace “decentralized finance” as an option for individuals and investors, and consider the extent of control a software application has over assets, modification ability, and technological capacity to comply with current regulatory obligations when assessing its regulatory treatment.
The SEC and CFTC are also encouraged to use safe harbors and regulatory sandboxes in order to “allow innovative financial products to reach consumers without bureaucratic delays,” according to a fact sheet accompanying the report.
The group also called on the Treasury Department and banking agencies to swiftly implement the GENIUS Act—or the Guiding and Establishing National Innovation for U.S. Stablecoins Act—which Trump signed into law on July 18.
It recommended modernizing the payments infrastructure and eliminating “costly and outdated legacy systems” by promoting the use of dollar-backed stablecoins.
The GENIUS Act establishes a regulatory framework for stablecoins by installing consumer safeguards, reserve requirement ratios, and audit and anti-money laundering standards.
SEC Chief Paul Atkins issued a statement expressing support for the group’s recommendations, saying they marked an “important milestone in unlocking American innovation” in the crypto marketplace.
“At its core, the PWG report reflects a conviction that I have long held: 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,” Atkins stated.
The working group consists of several government officials, including Treasury Secretary Scott Bessent, U.S. Attorney General Pam Bondi, and Office of Management and Budget Director Russell Vought.
