With the recent conclusion of the government shutdown, the crypto industry is seizing the opportunity to present key regulatory requests to the White House before the year ends.
December promises to be a pivotal month for digital assets, especially under President Donald Trump’s administration, which has shown positive momentum in advancing crypto regulations.
What The Crypto Industry Wants
In a letter released on Thursday, November 20, the Solana Policy Institute urged immediate action from the Treasury and the Internal Revenue Service (IRS) on several policy initiatives, placing the Institute at the forefront of this push.
The letter highlights that as Congress continues its legislative work, President Trump’s administration is capable of implementing significant changes that could provide quick victories for the industry.
Among the primary requests outlined in the letter is the need for tax clarity. The industry is seeking comprehensive guidance on various technical aspects, including staking, mining, airdrops, cross-chain transactions, collateral pledging, and charitable donations.
Specifically, the crypto sector is advocating for clearer tax regulations that prevent taxation on unrealized income, promoting alignment of tax rules with economic realities.
There’s a push for the Treasury Department to offer revisions that define staking and mining rewards as property taxed upon disposition, drawing from established tax principles governing asset sales.
Another crucial request focuses on regulatory certainty. The industry is calling for defined rules that would support developers, decentralized finance (DeFi) protocols, and self-custody of digital assets. The request includes provisions for no-action relief and safe harbors within existing regulatory frameworks.
The letter also emphasizes the need for DeFi protection and innovation. It calls for updated guidance from the Financial Crimes Enforcement Network (FinCEN) and robust cybersecurity measures to foster a thriving decentralized project ecosystem in the US.
Additionally, there’s a proposal for the IRS to clarify that blockchain-related activities, such as cryptographic engineering and smart contract development, should qualify for research and development tax credits.
SEC’s Token Safe Harbor Framework Cited As Model
Another key point in the letter pertains to calling for justice for Tornado Cash developer Roman Storm, urging the Department of Justice to drop charges against him.
The signatories argue that such a move would reaffirm the Administration’s commitment to protecting developers and recognize that the publication of open-source software is a form of speech protected under the First Amendment.
Furthermore, the letter articulates requests for enhancing US software development by advocating for the adoption of safe harbors and regulatory sandboxes for DeFi projects and developers.
This would enable the launch of tokens and protocols, thus fostering digital asset innovation through the creation of user-friendly web interfaces. The industry references SEC Commissioner Hester Peirce’s Token Safe Harbor Framework as a model for such proposals.
In addition to these requests, anticipation is building around the forthcoming Market Structure bill, which aims to provide enhanced clarity in the digital asset landscape.
Markup sessions for this important legislation are reportedly scheduled for early December, indicating that significant developments may be imminent as the year draws to a close.
Featured image from DALL-E, chart from TradingView.com
