- Over 65 cryptocurrency companies are urging President Trump to provide simple but urgent regulatory guidance.
- Their conditions include strict tax laws and strong safeguards for developers.
- They believe ambiguous rules might lead to lower innovation and force blockchain companies overseas.
Over 65 crypto firms have written a letter to President Trump to regulate digital assets very quickly. The companies add that the U.S. is losing its innovativeness to the rest of the world as the government procrastinates on regulatory clarity.
Crypto Firms Seek Instant and Better Regulation
The group requested stricter protection for developers and the absence of complexities in tax rules. They also desire that federal agencies should apply equal treatment to blockchain projects.
The key stakeholders in the coalition are Solana, Coinbase, Uniswap Labs, and Exodus. They argue that there are certain agencies that Congress should allow to make decisions without involving it.
The letter includes the Treasury Department, IRS, SEC, CFTC, and Justice Department as key authorities which can revise crypto policies now. One of the most requested clarifications concerns the way the taxation of staking and mining rewards works.
The crypto firms requested that such rewards be considered as self-generated property, which requires taxation only at their sale. They also want everyday crypto spending to be exempted from tax bills to prevent complex taxation. They tag this as ‘small transaction exemption.’
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Crypto Firms Seek Stronger Developer Protections
The letter adds that the same concepts have already been observed in the digital asset tax proposal by Senator Cynthia Lummis. Another emphasis of the coalition is the increased necessity to safeguard open-source developers.
The reason behind their concerns is due to recent prosecutions of privacy tool developers. They mention Roman Storm, who was charged in court because of the code that he released as a developer of Tornado Cash.
The crypto firms state that the case of Storm poses a danger to innovation and free speech. They would prefer that the Justice Department drop the charges and announce that the creation of open-source software is no longer a crime.
The companies urge President Trump to request the SEC and CFTC to provide temporary guidance that safeguards these developers until the adoption of final rules. In their opinion, this will prevent enforcement measures against teams that construct permissionless protocols.
They mention that existing complexities are detrimental to startups that are afraid of vague regulations and fines. Better coordination of federal agencies is also requested by them.
U.S. May Start Lagging in Innovation
The crypto firms affirm that a system of fragmented oversight ignites confusion and slows down progress in the industry. They also want the top regulators to promote self-custody and expand exemptions, which will allow the industry’s DeFi sector to flourish.
They ask FinCEN to seek clarity that non-custodial software is not subject to the Bank Secrecy Act. They also encourage the U.S. Treasury to abandon a plan that will identify crypto mixers as key money-laundering services.
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