U.S. Aims to Reclaim Crypto Leadership With Unified Regulatory Framework

The U.S. is poised to reclaim its position as a global leader in the cryptocurrency industry, according to Ji Hun Kim, CEO of the Crypto Council for Innovation (CCI). His remarks follow the release of the White House’s Presidential Working Group on Financial Markets report, which outlines a unified regulatory approach to digital assets. The report suggests a potential resolution to the longstanding disagreement between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) over the classification of cryptocurrencies, particularly Bitcoin and Ether, as commodities rather than securities [1].

Kim emphasized the report as a significant shift, signaling the CFTC’s growing role in overseeing digital commodities. He stated that the U.S. is now in a “crypto sprint,” with both the SEC and CFTC moving quickly to implement the report’s recommendations. This alignment, according to Kim, reflects a broader acknowledgment of the unique nature of digital assets and the need for a tailored regulatory framework [1].

The report is seen as a response to years of regulatory uncertainty that pushed many U.S. crypto firms overseas, particularly to jurisdictions like Dubai, Singapore, and Hong Kong, which offered clearer regulatory environments. However, even those regions have introduced stricter rules in recent months, with Dubai requiring compliance with updated regulations and Singapore cracking down on unlicensed firms. Meanwhile, Hong Kong has introduced its Stablecoin Ordinance, creating a new licensing regime for stablecoin issuers [1].

The White House report also reinforces the U.S. stance against government-issued central bank digital currencies (CBDCs), a policy supported by President Donald Trump. Kim praised this approach, arguing that CBDCs threaten individual financial privacy. Instead, he highlighted the potential of private stablecoins, particularly under the proposed GENIUS Act, as a market-driven alternative that could bolster the dollar’s dominance in the global financial system [1].

In parallel, the SEC has launched “Project Crypto,” a program aimed at developing formal guidance for digital asset firms and encouraging crypto companies to return to the U.S. The initiative includes streamlining licensing for brokerages and clarifying the boundaries between securities and commodities. Meanwhile, the CFTC is preparing a “crypto sprint” to implement the report’s recommendations, with Acting Chair Caroline Pham confirming the agency’s intent to take a more central role in regulating non-security digital assets [1].

The CLARITY Act, which passed in the House in July, is a critical piece of this regulatory puzzle. It seeks to end the jurisdictional conflict between the SEC and CFTC by clearly defining their roles. Kim described the act as essential to creating regulatory clarity and fostering innovation. However, the bill remains pending in the Senate [1].

Despite these efforts, some critics argue that the White House report and the CLARITY Act amount to deregulation, potentially legitimizing risky crypto businesses. A coalition of civil rights and consumer advocacy groups has voiced concerns over the CLARITY Act, while Senator Elizabeth Warren and others have raised questions about potential conflicts of interest related to the Trump family’s crypto investments [1].

Kim, however, rejected the notion of deregulation. He emphasized that the new regulatory approach reflects a recognition of the unique attributes of digital assets and a commitment to protecting consumers and investors. The White House report, he said, is part of a broader strategy to “combat illicit finance” and establish clear rules for the industry [1].

With the SEC and CFTC now largely aligned with the White House’s vision, the U.S. appears ready to move past regulatory infighting and ambiguity. Kim described this as a pivotal moment for the country to lead the global crypto race, leveraging its legal and financial infrastructure to create a regulatory environment that supports innovation and protects stakeholders [1].

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