The dust is still settling from crypto week on Capitol Hill, but government officials are already pushing their latest plan to boost digital assets.
The Working Group on Digital Asset Markets, established under an order from President Donald Trump, released its report detailing crypto policy recommendations late Wednesday.
Federal officials recommended that the US government establish a "fit-for-purpose market structure framework" to best support the digital asset industry and help it grow while also protecting consumers and ensuring the US maintains its global crypto dominance.
A White House fact sheet said that the group believes action is needed from both the Commodity Futures Trading Commission and the Securities and Exchange Commission, two agencies that have been at odds in the past over which one should regulate the sector.
The report said that both regulatory agencies should use their authority to provide further clarity for investors around matters such as registration, custody, and trading. It also highlighted the need for the government to allow consumers access to "innovative financial products" without certain regulatory or legal provisions.
The group proposed that Congress enact legislation that "eliminates existing gaps in regulatory oversight by providing the CFTC authority to oversee spot markets for non-security digital assets."
Regulatory clarity was a sticking point for the crypto market under past administrations. The SEC led by Gary Gensler during Joe Biden's term as president was often criticized by the market for not providing clear guidance, and for regulating by enforcement.
The market was already cheering this month's "crypto week" in Washington, and market players tell Business Insider that the latest policy proposals further strengthen government support for the space.
"I've been building crypto infrastructure since 2017 both for traditional entities and for DeFi, and [the] Working Group recommendations are the first time I've seen Washington actually understand what we need," Connor Howe, co-founder of Enso.Build, told BI. "Clear rules, not more enforcement."
Scott Buchanan, chief operating officer of Bitcoin Depot, also expressed optimism that new policies will help spur growth for crypto markets.
"Clear rules give the market confidence, open the door to mainstream adoption, and finally allow the industry to focus on growth instead of guessing what the rules are," he said. "With a solid foundation, we could see reduced market volatility and a more stable environment for both retail and institutional investors."
Since the group released its report, several prominent cryptos have risen, including Bitcoin, Ethereum and Solana, indicating the market is reacting well to the news.
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