Trump-Backed Task Force Demands Federal Crypto Regulation Overhaul—"Cut the Red Tape"
A Trump-era advisory group just dropped a bombshell: Federal crypto regulations need a chainsaw, not tweaks.
The Push for Crypto Breathing Room
The committee—stacked with Trump appointees—is urging agencies like the SEC and CFTC to back off aggressive enforcement and adopt 'innovation-friendly' policies. Their argument? Current rules are strangling US competitiveness while offshore hubs like Singapore and Dubai eat Wall Street's lunch.
Regulators in the Hot Seat
Insiders say the report takes direct aim at Gary Gensler's SEC, accusing it of 'regulation by litigation.' One leaked line: 'When every token launch feels like a minefield, you don't get innovation—you get flight.'
The Bottom Line
This isn't just policy—it's political. With crypto voters becoming a swing bloc, the report reads like a 2026 campaign playbook. Because nothing unites libertarians and tech bros like a common enemy: paperwork.
*Bonus jab: Meanwhile, traditional finance keeps charging 2% management fees for 0.5% returns—but sure, crypto's the 'risky' bet.*
White House Crypto Report
According to Bloomberg, the WHITE House described the report as an essential step toward positioning the United States at the forefront of the blockchain revolution.
“By implementing these recommendations, policymakers can usher in the Golden Age of Crypto,” officials stated in a fact sheet accompanying the report from the Working Group on Digital Asset Markets.
Formed through an executive order signed by TRUMP in January, the task force has proposed a variety of policy measures aimed at addressing the complexities of the digital asset landscape.
Among its key recommendations is the urgent passage of the Digital Asset Market Clarity Act, which seeks to eliminate regulatory gaps by granting the Commodity Futures Trading Commission (CFTC) authority to oversee spot markets for non-security digital assets.
The report also emphasizes the need to embrace decentralized finance (DeFi) technologies as a vital component of the evolving financial ecosystem.
The report also urges both the Securities and Exchange Commission (SEC) and the CFTC to act swiftly, providing clarity on critical issues such as registration, custody, trading, and recordkeeping to enable federal-level trading of digital assets.
Bitcoin Reserve With 198,000 Seized Coins
These recommendations come on the heels of Trump’s recent signing of a congressional bill called the GENIUS Act, aimed at regulating stablecoins, marking a significant victory for the cryptocurrency industry.
This new law establishes rules for US dollar-backed stablecoins, which proponents believe will pave the way for broader integration of digital assets into the financial system.
The White House has indicated that additional details about the Strategic Bitcoin Reserve will be forthcoming. This reserve is expected to consist of approximately 198,000 Bitcoin that the government has seized from criminal cases and other proceedings.
An executive order issued earlier this year mandated that the Treasury Department retain these bitcoin holdings, with directives to explore budget-neutral methods for acquiring more.
The report also addresses other crucial issues, including the need for clarity on Bank Secrecy Act obligations to strengthen anti-money laundering (AML) efforts.
On tax policy, it recommends that Congress classify digital assets as a new category subjected to modified tax rules applicable to securities or commodities.
Furthermore, it calls for legislation to extend wash sale rules to digital assets, preventing investors from claiming tax losses on securities if they repurchase similar assets within a designated timeframe.
Featured image from DALL-E, chart from TradingView.com
