August 5, 2025
5 min read
Yohan Yun
US regulators align on crypto oversight as White House report ends SEC-CFTC turf war, sparking a race to lead global digital asset innovation.
A crypto lobby group asserts that the United States is regaining its footing to lead the cryptocurrency industry, following a recent White House report that advocates for the alignment of the nation's financial regulators on digital assets.
The report, released recently, signifies a potential resolution to the prolonged jurisdictional dispute between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) regarding the classification and regulation of cryptocurrencies.
Ji Hun Kim, the newly appointed CEO of the advocacy group Crypto Council for Innovation (CCI), stated in an exclusive interview with Cointelegraph that "Bitcoin, Ether, and many other digital assets are much more akin to commodities."
He further elaborated, "The President’s Working Group report reflects this, and I do think the CFTC will have an important role to play when it comes to the oversight of these assets, which are digital commodities – not securities."
Kim, who attended the report's public release at the White House, expressed that "the time is now" for the U.S. to take the lead in the global crypto race. While other jurisdictions have a significant head start, the U.S. is now in a "crypto sprint," with both the SEC and CFTC signaling intentions to swiftly implement the report's recommendations.
Originally published at Cointelegraph on Tue, 05 Aug 2025.
US Race to the Crypto Capital
Under the previous administration, the SEC faced considerable criticism from the crypto industry for its regulation-by-enforcement approach, characterized by lawsuits against crypto firms based on existing securities laws. This crackdown was accompanied by a wave of "debanking," commonly referred to as "Operation Chokepoint 2.0," which saw crypto firms lose access to traditional financial services. "This is another example where the report is so explicit and strong and positive — it clarifies that banks should be allowed to engage in various digital asset activities," said Kim. The past uncertainty in the U.S. regulatory environment prompted many crypto companies to relocate offshore. Dubai, with its dedicated crypto regulator, quickly emerged as a premier destination. Singapore and Hong Kong also gained popularity by offering favorable tax treatment and formal licensing regimes for cryptocurrency exchanges. However, the pursuit of regulatory clarity abroad has presented its own challenges. While global regulatory clarity is improving, industry players are discovering that clarity does not always equate to a crypto-friendly environment, an area where the U.S. is increasingly showing promise. Earlier this year, Dubai's Virtual Asset Regulatory Authority intensified its supervision, giving firms 30 days to comply with updated rules. Singapore took action by expelling unlicensed firms that exploited regulatory loopholes by exclusively serving overseas clients. Hong Kong's cautious approach to issuing licenses has also indicated that not all applicants are welcomed. Hong Kong's Stablecoin Ordinance, which recently took effect, established a new licensing framework for stablecoin issuers. The European Union has its own stablecoin regulations, integrated into its broader Markets in Crypto-Assets (MiCA) framework. The U.S. response came in the form of the GENIUS Act, which has been promoted as a vital tool for safeguarding the dollar's global financial dominance. This situation highlights how cryptocurrency has become intertwined with a wider geopolitical power struggle. China has been actively pursuing the internationalization of its fiat currency, the renminbi, through its central bank digital currency (CBDC). In contrast, former U.S. President Donald Trump signed an executive order in January banning any U.S. government-issued CBDC. Kim supports this stance, arguing that CBDCs pose a direct threat to privacy. He instead pointed to the GENIUS Act as providing a viable, market-driven alternative. "With GENIUS, you can see a lot of growth and development [in private stablecoins]. I think the primary focus should be on these types of stablecoins," he added. Meanwhile, Hong Kong's stablecoin regime is expected to play a strategic role in China's CBDC aspirations. Chinese academics suggest that Hong Kong's stablecoin network could facilitate the integration of Beijing's digital currency into the global stablecoin ecosystem.US SEC’s “Project Crypto” and CFTC’s “Crypto Sprint”
Shortly after the White House's crypto report was published, the SEC unveiled "Project Crypto," an initiative designed to develop formal guidance for digital asset firms and attract crypto companies back to the U.S. as a response to the White House report. The SEC has proposed streamlining licensing by allowing brokerages to operate across various asset classes with a unified license. It also aims to establish a clearer distinction between securities and commodities. SEC Chair Gary Gensler stated, "It should not be a scarlet letter to be deemed a security. Many issuers will prefer the flexibility in product design that the securities laws afford, and investors will benefit from the opportunity to earn distributions, voting rights, and other features typical of securities." The CFTC, concurrently, is positioning itself to assume a more significant role in regulating non-security digital assets. Acting CFTC Chair Caroline Pham announced on August 1st that the CFTC would initiate a "crypto sprint" to implement the Presidential Working Group's crypto recommendations. This division of responsibilities—where the CFTC would regulate spot markets for digital commodities and the SEC would focus on tokenized securities—is central to the CLARITY Act, which Kim described as crucial for ending the jurisdictional tug-of-war between the two agencies. While the bill has passed the House, it is still awaiting progress in the Senate. "You'll see increased collaboration between the two agencies. That's a theme many people overlook in this report. It was also included in the president’s executive order back in January, which directed the agencies to work together on providing clarity, guidance and rulemaking," Kim remarked.US Crypto Clarity Is Not Deregulation, CCI Says
Proponents of Bitcoin have voiced concerns that the White House's crypto report did not fully address their expectations, particularly regarding an anticipated update to the Bitcoin reserve. These concerns extend beyond the crypto industry. A coalition of over 80 organizations representing civil rights and consumer groups has opposed the CLARITY Act, contending that it "deregulates" the crypto industry by legitimizing risky businesses. More recently, Senator Elizabeth Warren, alongside Senators Chris Van Hollen and Ron Wyden, has urged the Office of the Comptroller of the Currency to investigate potential conflicts of interest arising from the Trump family's cryptocurrency ventures. However, Kim disagrees with this framing. He believes that the White House report and recent regulatory developments concerning the GENIUS and CLARITY Acts signify a shift in regulatory philosophy rather than deregulation. "I don’t think this is deregulation," he stated. "I think this is saying, ‘Hey, we recognize the unique attributes of digital assets. We want to work with the industry to make sure that we best combat illicit finance, protect consumers and investors and give the industry clear rules of the road.'" With two of the nation's leading financial watchdogs now largely aligned with the White House, the U.S. appears poised to move beyond internal disputes and regulatory ambiguity.Originally published at Cointelegraph on Tue, 05 Aug 2025.