Over 70 cryptocurrency and blockchain organizations have united in a formal appeal to President Donald Trump, calling for immediate action to clarify regulations across various government agencies. Spearheaded by the Solana Policy Institute, the letter aims to address growing concerns regarding the legal landscape for digital assets. The organizations stress the importance of regulatory certainty to foster innovation, compliance, and investment in the rapidly expanding crypto sector.
The letter highlights several positive actions taken by the Trump administration during its first year, such as reversing the IRS Broker Rule and rescinding the 2022 Department of Labor guidance that restricted digital asset inclusion in 401(k) plans. These steps have been seen as beneficial for crypto investors and businesses. However, the letter emphasizes that further action is needed to ensure continued industry growth and stability.
Tax and Compliance Issues Require Immediate Attention
One of the key points raised in the letter is the need for the U.S. Treasury Department to address unclear tax guidelines related to digital asset mining and staking rewards. The coalition seeks IRS confirmation that activities such as bridging, wrapping, or cross-chain burn/mint should not be classified as taxable events. The letter also requests clarification on airdrops, forks, and rebase events to avoid the issue of phantom income for crypto holders.
Additionally, the organizations are asking for clear rules regarding collateral pledging and liquidations, ensuring that these actions do not trigger unnecessary tax obligations. The letter advocates for the application of de minimis tax rules to digital currencies, suggesting that small gains up to $600 per transaction used to purchase goods and services should be exempt from taxes. Updated charitable giving rules are also requested, specifically treating donations as “readily valued property” without requiring appraisals.
Regulatory Clarity on DeFi and Blockchain Development
The letter also urges the SEC and CFTC to provide guidance on decentralized finance (DeFi) projects, particularly in terms of self-custody. Industry participants seek regulatory sandboxes and safe harbors, allowing DeFi developers to launch new projects with more clarity. The coalition advocates for protective guidance to shield developers from unnecessary enforcement while the rules are still being shaped.
These proposed regulatory actions are seen as essential for securing the future of digital assets and blockchain technology in the United States, helping to ensure that the industry remains competitive and compliant in an evolving market.
GENIUS Act and Stablecoin Regulations
In July, the U.S. House of Representatives passed the GENIUS Act, a landmark bill designed to regulate stablecoins at the federal level. With a vote of 308-122, the bill is now on its way to President Donald Trump for final approval. If enacted, the GENIUS Act would require stablecoins pegged to the U.S. dollar to be fully backed by liquid assets such as cash or short-term Treasury securities. Additionally, the bill mandates that the composition of these reserves be disclosed monthly, ensuring transparency in the stablecoin market.
With stablecoins currently valued at over $262 billion, they have become crucial players in cryptocurrency trading and payments. Lawmakers believe that the GENIUS Act will provide much-needed safeguards for consumers and help mitigate the financial risks associated with the growing stablecoin industry. If signed into law, the bill could lay the foundation for a more stable and transparent regulatory environment for digital currencies.