After much anticipation, the White House has released a set of proposed cryptocurrency policies. This report aims to resolve the regulatory ambiguity that has challenged digital asset companies for years, particularly concerning the application of existing securities laws.
The Digital Asset Working Group, under the direction of the U.S. President’s administration, issued its findings last week. The report provides recommendations for structuring the crypto market, regulating crypto-related banking activities, and strengthening the U.S. dollar’s position through initiatives involving stablecoins and crypto taxation.
A central recommendation within the report advocates for a clearer division of regulatory authority between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). The CFTC potentially will oversee spot markets for digital assets, a move intended to address long-standing concerns regarding overlapping or conflicting regulatory enforcement.
According to Edwin Mata, CEO of blockchain tokenization platform Brickken, clarifying the regulatory boundaries for these two agencies is fundamental. In a statement to Cointelegraph, Mata explained that this clarity would provide a foundation for a “mature, transparent and scalable crypto ecosystem.”
Mata further elaborated, stating that assigning oversight based on each body’s expertise “avoids duplication and confusion,” ultimately facilitating “consistent legal interpretations.” He noted:
“This is critical in jurisdictions like the United States, where case law and precedent play a dominant role.”
Mata added that past inconsistencies in regulation led to fragmented legal interpretations, requiring courts to intervene in disputes between agencies. This report, he believes, will foster “coherent jurisprudence” allowing legal opinions to develop on a more stable base.
Ripple Lawsuit Settlement as Context
The White House’s policy suggestions arrive shortly after the conclusion of a major legal battle in the crypto space: the SEC’s lawsuit against Ripple Labs. The SEC initiated legal proceedings against Ripple in December 2020, alleging that the company illegally raised $1.3 billion through unregistered sales of the XRP (XRP) token, which they considered an unregistered security offering.
On March 19, Ripple’s CEO, Brad Garlinghouse, announced that the SEC had withdrawn its appeal against the company. He heralded the move as a significant “victory” for both Ripple and the wider crypto industry.
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Prior to that, in July 2023, Judge Analisa Torres determined that XRP’s status hinged on the type of sale. It was deemed not a security when sold through retail channels, but classified as a security when sold to institutional investors. This ruling led to a $125 million penalty imposed on Ripple in August 2024.
On June 12, Ripple and the SEC jointly requested to release $125 million held in escrow, intended for settlement fees.
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Overcoming Obstacles: SEC/CFTC Clarity for Crypto Growth
Analysts at the Bitfinex exchange indicate that the White House’s crypto policy recommendations could help resolve “ambiguous securities laws”. By establishing clear regulatory boundaries, it could remove a major obstacle hindering U.S. crypto innovation.
The analysts told Cointelegraph that while the report supports “same risk, same rules” legislation and legitimizing crypto, challenges remain.
“The report’s push for intensified SEC enforcement against non-compliant firms, absence of details on a promised US Bitcoin reserve, and potential fractures in the crypto community over regulatory stringency, as noted in recent analyses.”
The Bitfinex analysts also noted that more guidance is needed to streamline banking and custody rules for crypto service providers. They suggested that such rules are potentially under development.
Crypto Regulation Concerns in the US