The Commodity Futures Trading Commission (CFTC) launched a “crypto sprint” to implement President Trump’s digital asset agenda, with Acting Chairman Caroline Pham announcing coordination with SEC Chairman Paul Atkins on “Project Crypto” initiatives.
The regulatory acceleration follows the release of a 166-page White House report calling for America to become the “crypto capital of the world” through comprehensive policy reforms.
CFTC and SEC Coordinate Massive Regulatory Overhaul
The CFTC has already introduced 24/7 trading and perpetual derivatives on registered markets in April and May, respectively, while withdrawing outdated staff advisories to improve regulatory clarity.
The agency held its first-ever Crypto CEO Forum and initiated discussions on digital asset market pilot programs alongside industry tokenization initiatives.
SEC Chairman Atkins simultaneously announced Project Crypto at the America First Policy Institute, outlining plans to modernize securities regulations and allow America’s financial markets to move on-chain.
The initiative targets onshoring crypto businesses through clear guidelines for asset distributions, custody, and trading while establishing “super-app” functionality for integrated platforms.
The coordinated regulatory push comes amid growing institutional adoption, with 23% of North American CFOs expecting treasury cryptocurrency use within two years, according to Deloitte surveys.
White House Report Outlines Comprehensive Digital Asset Strategy
The Digital Asset Markets Report categorizes cryptocurrency as “next-generation technology” alongside railroads and the internet, condemning the Biden administration’s approach as creating a “hostile environment” for crypto businesses.
Source: White House
The document emphasizes reversing “Operation Chokepoint 2.0” policies that drove fintech firms offshore.
Core recommendations include establishing three digital asset categories: security tokens, commodity tokens, and tokens for commercial use.
The framework grants the CFTC clear authority over spot markets for non-security digital assets while permitting combined exchange, custody, and broker services under efficient licensing structures.
The report also advocates for Congressional passage of the Digital Asset Market Clarity Act (CLARITY) to divide jurisdiction between the SEC and the CFTC while protecting self-custody rights.
In addition, Federal preemption over state laws for registered intermediaries would streamline regulatory compliance across jurisdictions.
Banking provisions reverse prior policies by ending crypto firm debanking practices and clarifying permissible digital asset activities.
The GENIUS Act also provides regulatory clarity for dollar-denominated stablecoins through complete reserve requirements and consumer protections in insolvency scenarios.
A Central Bank Digital Currency prohibition appears throughout the report, with Executive Order 14178 banning any agency from establishing, issuing, or promoting CBDCs domestically or internationally.
The policy views retail CBDCs as threatening individual rights and financial sovereignty.
Conflict of Interest Concerns Shadow Trump Crypto Holdings
Senator Elizabeth Warren led Democratic colleagues in questioning the Office of the Comptroller of the Currency head, Jonathan Gould, about potential conflicts involving Trump family cryptocurrency ventures.
The inquiry focuses on USD1, a stablecoin launched by Trump-linked World Liberty Financial with a $2.17 billion market capitalization. Warren’s letter details a $2 billion deal involving Emirati firm MGX and Binance, using USD1 to facilitate investment.
The senators called the arrangement “a staggering model for corruption,” noting Binance’s guilty plea to anti-money laundering violations while helping develop USD1’s code.
Trump’s crypto holdings represent substantial personal wealth, with Bloomberg estimating TMTG stock comprises $2.2 billion of his $6.6 billion fortune. His broader cryptocurrency investments have amassed over $1.2B for him in recent months, according to Cryptonews’ recent report.
Nearly 70 Trump administration nominees and officials hold crypto investments ranging from modest sums to over $120 million.
Vice President JD Vance and seven Cabinet members collectively disclosed at least $2 million in crypto assets, raising additional conflict concerns.
The crypto industry donated over $26 million to Trump’s campaign, with Blockchain.com leading contributions at $5 million.
Venture capitalists Marc Andreessen and Ben Horowitz each gave $3 million, while Gemini Trust added nearly $3 million in support.
Just today, Trump Media disclosed plans for a “Truth Token” rewards program while deploying $2 billion into Bitcoin investments, positioning itself among the top five public Bitcoin holders globally.
Looking forward, the regulatory sprint continues amid these ethical questions surrounding growing presidential crypto involvement.
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