TLDR
- Over 65 crypto companies and organizations sent a letter to President Trump requesting clarity on crypto regulations.
- The letter emphasizes the need for more explicit rules on taxation, financial innovation, and developer protections in the crypto sector.
- Industry representatives urge the U.S. government to coordinate actions across multiple agencies to address regulatory uncertainty.
- The letter calls for more guidance from the SEC, IRS, and CFTC to help crypto companies navigate complex regulations.
- Developers seek protection against potential prosecution and request clearer guidelines for decentralized finance protocols.
Over 65 crypto companies and organizations have addressed a letter to President Donald Trump, urging clarity on crypto regulations. The signatories, including major industry players from Ethereum, Solana, and ZCash, called for more explicit rules on taxation, financial innovation, and developer protection. The letter emphasizes the need for better coordination between agencies to address uncertainties in crypto regulation.
Crypto Taxation Remains a Major Concern
The letter highlights the issue of crypto taxation, which involves numerous agencies. Industry representatives stressed that current regulations lack clarity, especially for decentralized finance (DeFi) and token creation. They pointed out that unclear guidelines could harm the sector’s growth, leaving many startups uncertain about their legal standing.
“We urge the Administration to provide clearer guidelines on crypto taxation,” the letter reads. The signatories urge the Treasury Department and the IRS to clarify their stance on the tax treatment of digital assets. Many organizations are still struggling to navigate the complex tax requirements surrounding crypto transactions.
The representatives also pointed out that crypto firms face challenges in ensuring compliance without a consistent regulatory framework. This uncertainty is a barrier to innovation and could hinder the U.S. from remaining competitive in the global crypto market. The letter calls for decisive action to simplify and clarify the current taxation rules.
Need for Clearer Rules on Financial Innovation
The signatories also raised concerns about the barriers to financial innovation in the crypto sector. They called for clearer rules to facilitate easier access to crypto markets and for better regulatory coordination. The letter emphasized the need for a regulatory framework that promotes innovation without stifling growth.
The industry seeks guidance on how financial products, including stablecoins, can operate under current U.S. laws. “Clearer rules on financial innovation will help the U.S. lead in crypto technology,” the letter stated. Crypto companies have urged the government to prioritize transparent regulations that enable the industry to thrive.
Further, the letter noted that DeFi applications continue to operate without specific regulatory frameworks, exposing U.S. traders to risks. These gaps in crypto regulations leave both developers and investors uncertain about their legal obligations, impacting the industry’s expansion.
Developers Demand Protection from Prosecution
A major concern for the crypto industry is protecting developers from potential prosecution. The letter urges the Department of Justice (DOJ) to provide clear guidance to avoid prosecuting developers or platforms working on decentralized applications. This request aims to create a safe environment for developers to innovate without fear of legal repercussions.
The signatories call for a clearer framework on how decentralized protocols and front-end services should operate without violating U.S. securities laws. They argued that any ambiguity in regulatory frameworks could lead to developers and platforms being unfairly targeted by regulators.
The crypto industry believes that addressing these concerns will protect innovation and ensure that the U.S. remains at the forefront of global crypto development. As more DeFi protocols gain traction, the call for regulatory clarity is becoming increasingly urgent.
Industry Calls for Coordinated Action Across Agencies
The letter also urges various U.S. regulatory agencies to collaborate more effectively in defining crypto regulations. Agencies like the SEC, CFTC, and the Consumer Financial Protection Bureau have been called to work together to clarify existing laws. The crypto industry hopes that these agencies will take action to create a more unified approach to crypto regulations.
The letter specifically requested that the SEC Crypto Task Force coordinate with other divisions to issue interim guidance. This guidance would provide developers with greater certainty when designing DeFi protocols. The letter emphasizes that a lack of coordination among agencies could lead to conflicting regulations that hinder industry growth.
The crypto industry also expressed concern about the ongoing regulatory uncertainty. Without clearer guidelines, companies face risks when navigating the regulatory landscape. The signatories urged the U.S. government to take immediate steps to reduce these risks.
