The Trump administration’s push for pro-crypto policies has led to an unprecedented level of interagency coordination in Washington. This marks a shift from previous years of regulatory friction. Federal agencies, congressional committees, and industry representatives are reportedly working together to build clear regulatory framework for digital assets.
In a February 15 Xpost, Fox Business correspondent Eleanor Terrett reported that several government entities have come together to make the US a global crypto hub. The US Securities and Exchange Commission (SEC), Commodity Futures Trading Commission (CFTC), the Presidential Working Group, and a Bicameral Working Group for Digital Assets in Congress, are working together to create a digital currency framework.
Despiteconcerns over regulatory overlap, sources told Terrett that cooperation between these bodies has been surprisingly effective. Terrett described the interagency collaboration as “a lot of cooks, but not enough to spoil the sauce.”
Crypto Czar David Sacks unites agencies to work on crypto regulations
David Sacks, the President Trump-appointed US Crypto and AI Czar, confirmed the interagency collaboration. He credited his associate Bo Hines, for ensuring smooth coordination among different agencies.
“The inter-agency Working Group on Digital Assets is working well together to implement the President’s agenda,” Sacksstated in repost to Terret’s update, hinting at upcoming policy announcements.
Consensys lawyer and former US Department of Justice official Bill Hughes echoed these sentiments, noting that federal officials were “playing well with each other,” without bureaucratic conflicts.
“SEC and CFTC working together, rather than the SEC giving CFTC the silent treatment, is a great development…Maybe this is a honeymoon and doesn’t last – differences of opinion on policy, personality conflicts, and ambition can all pose challenges. But we are off to a really promising start,” Hughes said in his X post.
On Jan 23, President Donald Trumpissued an executive order titled “Strengthening American Leadership in Digital Financial Technology.” It was aimed at improving the development and adoption of blockchain technology in the US.
The signed order coined cryptocurrencies as “assets that play a key role in driving innovation and economic growth,” while doubling down on the administration’s commitment to foster a responsible expansion within the sector.
As part of the directive, Trump revoked several policies enacted under the Biden administration, formally prohibited federal agencies from pursuing a central bank digital currency (CBDC), and established an interagency working group to oversee digital asset markets.
A contrast to the Biden administration’s approach
Trump’s pro-crypto stance is a sharp departure from the policies under former President Joe Biden, whose administration aggressively pursued regulatory enforcement against the industry.
During Biden’s tenure, the SEC and other regulators cracked down on major crypto exchanges, including Coinbase and Binance, alleging they were operating in violation of US securities laws. The companies denied the allegations, but the lawsuits created an uncertain regulatory climate.
Trump, in contrast, haspositioned himself as a “crypto president,” actively courting support from the digital asset industry. Crypto enthusiasts trust that the GOP leaders will help craft new regulations to clarify whether cryptocurrencies should be classified as securities, commodities, or another financial category.
A major development following the US President’s directive was the SEC’s decision to rescindStaff Accounting Bulletin 121 (SAB 121), which had made it “costly” for public companies to hold cryptocurrencies on behalf of customers.
Industry leaders had long argued that SAB 121 discouraged institutional adoption of digital assets, and its removal is seen as a victory for crypto firms.
Post-Biden, congressional lawmakers from both the House and Senate have reportedly aligned with the administration’s vision for crypto regulation. Representatives French Hill and Bryan Steilconfirmed that the Bicameral Working Group for Digital Assets is in sync with the Presidential Working Group in drafting new legislation.
Cryptopolitan Academy: FREE Web3 Resume Cheat Sheet – Download Now
This articles is written by : Nermeen Nabil Khear Abdelmalak
All rights reserved to : USAGOLDMIES . www.usagoldmines.com
You can Enjoy surfing our website categories and read more content in many fields you may like .
Why USAGoldMines ?
USAGoldMines is a comprehensive website offering the latest in financial, crypto, and technical news. With specialized sections for each category, it provides readers with up-to-date market insights, investment trends, and technological advancements, making it a valuable resource for investors and enthusiasts in the fast-paced financial world.
By Nermeen Nabil Khear 