A crypto lobby group claims that the US is back on track to lead the cryptocurrency industry after the White House’s latest crypto report called for the nation’s finance regulators to align on digital assets.
The report, released last week, marks a possible end to the long-standing turf war between the Securities and Exchange Commission and the Commodity Futures Trading Commission over how to classify and regulate cryptocurrencies.
“We’ve had legal precedent — Bitcoin, Ether and many other digital assets are much more akin to commodities,” said Ji Hun Kim, newly appointed CEO of the advocacy group Crypto Council for Innovation, in an exclusive interview with Cointelegraph.
“The President’s Working Group report reflects this, [and] I do think the CFTC will have an important role to play when it comes to the oversight of these assets, which are digital commodities — not securities.”
Kim, who attended the report’s public release at the White House, said “the time is now” for the US to take the lead in the global crypto race. While other jurisdictions have a years-long head start, the US is now in a “crypto sprint,” with both the SEC and CFTC signaling plans to swiftly implement the report’s recommendations.
The SEC under the previous administration faced widespread criticism from the crypto industry for its regulation-by-enforcement approach, filing lawsuits against crypto firms based on existing securities laws. That crackdown was coupled with what came to be known as “Operation Chokepoint 2.0,” a wave of debanking that saw crypto firms lose access to traditional financial services.
“This is another example where the report is so explicit and strong and positive — it clarifies that banks should be allowed to engage in various digital asset activities,” said Kim.
Past uncertainty in the US regulatory environment pushed many crypto companies offshore. Dubai quickly emerged as a top destination, with a dedicated crypto regulator. Singapore and Hong Kong also rose in popularity, offering favorable tax treatment and formal licensing regimes for cryptocurrency exchanges.