U.S. Crypto Leadership Revived as Regulators Align on Digital Assets

The U.S. is poised to reclaim its position as a global leader in the cryptocurrency sector, according to Ji Hun Kim, CEO of the Crypto Council for Innovation (CCI). The White House’s recent release of its crypto report, titled President’s Working Group on Market and Institutional Structure for U.S. Capital Markets, has been widely seen as a turning point in the regulatory landscape. Kim emphasized that the report signals a unified stance among U.S. financial regulators, particularly the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), to align on the classification and regulation of digital assets [1].

Kim, who attended the public release of the report at the White House, highlighted that the document recognizes the commodity-like nature of major cryptocurrencies such as Bitcoin and Ether. This marks a potential resolution to the long-standing regulatory tug-of-war between the SEC and CFTC over how to define and govern digital assets [1]. “The CFTC will have an important role to play in overseeing these digital commodities,” Kim stated, adding that the U.S. is now in a “crypto sprint” to implement the report’s recommendations swiftly.

The report comes amid a broader regulatory evolution, with both the SEC and CFTC introducing new initiatives to support the crypto industry. The SEC has launched “Project Crypto,” an effort to provide clear guidance to digital asset firms and encourage crypto companies to return to the U.S. The project includes streamlining licensing for brokerages and clarifying the distinction between securities and commodities [1]. Meanwhile, the CFTC has announced its own “crypto sprint” to implement the recommendations from the White House report, a move that Acting CFTC Chair Caroline Pham described as central to the commission’s current strategy [1].

Kim also praised the GENIUS Act, which he believes supports the growth of private stablecoins and reinforces the dollar’s dominance in the global financial system. He contrasted this with China’s central bank digital currency (CBDC) ambitions, which he views as a direct threat to privacy and a challenge to the U.S. dollar’s role in global finance. The White House report aligns with President Donald Trump’s executive order, which includes a ban on federal agencies using CBDCs [1].

However, the regulatory clarity being pursued in the U.S. has not gone unchallenged. Some critics argue that the CLARITY Act, which passed in the House, risks legitimizing risky crypto businesses by reducing oversight. A coalition of over 80 civil rights and consumer advocacy groups has raised concerns that the act amounts to deregulation [1]. Senator Elizabeth Warren, along with Senators Chris Van Hollen and Ron Wyden, has also called for greater scrutiny of potential conflicts of interest related to Trump’s cryptocurrency ventures.

Kim, however, rejects the notion that the recent regulatory developments represent deregulation. He stressed that the U.S. approach seeks to create a balanced framework that supports innovation while addressing risks such as illicit finance and consumer protection. “We want to work with the industry to make sure we best combat illicit finance, protect consumers and give the industry clear rules of the road,” he said [1].

The shift in U.S. regulatory posture has also been influenced by global trends, as other jurisdictions like Dubai, Singapore, and Hong Kong have emerged as crypto-friendly destinations. However, these regions are increasingly tightening their own regulations, signaling that regulatory clarity does not always equate to crypto-friendliness [1]. The U.S., with its coordinated regulatory efforts, is now positioned to leverage its legal and financial infrastructure to compete more effectively on the global stage.

With the SEC and CFTC now more aligned, the U.S. appears ready to move past internal disputes and regulatory ambiguity. The White House report and related initiatives represent a strategic shift in how digital assets are perceived and governed, with the potential to reshape the global crypto landscape.

Source: [1] [‘Time is now’ for US to lead global crypto race, says CCI chief](https://coinmarketcap.com/community/articles/6892061ddfbc1e645edd57ad/)