Trump administration signaled a major policy shift in digital assets

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After years of uncertainty and aggressive enforcement actions, the crypto industry may eventually enter a new era of regulatory clarity. The Trump administration has begun to implement the fundamental shift that many believe in regulated digital assets in the United States, which may create a more welcoming and innovative environment while continuing to focus on preventing illegal activities.

January 23, President Donald Trump An executive order was signed to “provide regulatory clarity and certainty” in the digital assets sector. The order establishes a presidential digital asset market working group led by the newly appointed "Crypto and AI Tsar" David Sacks. The task force is to review existing regulations, recommend modifications or cancellations, and provide a comprehensive federal framework for digital assets including StableCoins.

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Two days before the order was executed on January 21, the SEC formed its own cryptocurrency task force, chaired by a specialist Hester Peircelong-term advocacy of clearer encryption regulations. The mandate of the task force is importantly different from the previous government’s approach, focusing on developing a “comprehensive, clear regulatory framework” rather than relying primarily on law enforcement actions.

The task force is addressing several key areas that plague uncertainty in the industry, including:

The latest SEC action shows that this policy shift is already underway. On February 21, the agency closed its investigations on Robinhood (NASDAQ:HOOD) Crypto Business and NFT exchange Opensea without law enforcement action. On the same day, Coinbase (NASDAQ:COIN) announced that the SEC agreed in principle to dismiss the allegations against the company, which had previously been accused of operating as an unregistered stock exchange, broker and clearing agency.

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In a particularly noteworthy development, the SEC announced on February 27 that Memecoins “does not involve offers and sales under the federal securities laws.” The statement means that Memecoin transactions do not require SEC registration, which provides obvious clarity to popular digital asset classes.

Despite the relaxed regulation, authorities are still focusing on illegal actions. On February 24, cryptocurrency exchange OKX pleaded guilty to operating an unlicensed currency transmission business and agreed to pay a fine of more than $500 million. Despite the ban, and the lack of sufficient anti-currency money laundering procedures, the exchange has received special benefits for allowing U.S. customers.

"There will be consequences for financial institutions that use the U.S. market, but by allowing criminal activity to continue to violate the law," U.S. Attorney Matthew Podolsky said in a statement. While registration issues may be under less scrutiny, fraud and money laundering may remain prioritized.

Even with federal enforcement shifts, private litigation continues to provide a sense of responsibility. The class action lawsuit against OKX alleges that the necessary anti-money laundering process was not implemented, stressing that legal risks are beyond regulatory litigation.

For crypto businesses and investors, these developments suggest a complex but potentially more favorable regulatory landscape is emerging – a goal to provide clear rules while continuing to prevent illegal activities. As these changes develop, industry players will be wise and ensure compliance with firm basic financial regulations.

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