The White House has released a long-awaited report with recommendations for cryptocurrency policy aimed at eliminating regulatory uncertainty for companies dealing with digital assets. The document outlines proposals for dividing responsibilities between the SEC and CFTC, as well as recommendations for strengthening the US dollar's dominance through stablecoins.
Key Proposals of the Report
The report proposes a clear division of responsibilities between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). The CFTC would gain authority over spot crypto markets, addressing long-standing issues of overlapping jurisdictions and enforcement conflicts. Edwin Mata, a blockchain lawyer, noted: 'Clear regulation will lay the groundwork for a mature, transparent, and scalable crypto ecosystem.'
Resolution of the Ripple Lawsuit
The publication of recommendations coincided with the resolution of the SEC's lawsuit against Ripple Labs, in which the SEC alleged that the company sold unregistered securities in XRP. On March 19, Ripple CEO Brad Garlinghouse announced that the SEC had dropped its appeal, marking a significant victory for the company and the crypto industry. In July 2023, Judge Analisa Torres ruled that XRP is not a security in retail sales, yet is one when sold to institutional investors.
Regulatory Boundaries for the Crypto Industry
According to analysts from Bitfinex, the White House recommendations may alleviate industry concerns regarding ambiguous securities laws. However, significant questions remain regarding the next steps for easing banking custody rules for crypto services. Analysts also note the need for clearer regulations on non-compliant firms and the potential rift within the crypto community due to heightened regulatory strictness.
The overall context of the new White House report indicates a desire to create clear and understandable rules for the US crypto industry. These recommendations may help remove existing barriers and provide a more stable path forward for digital assets.
