• The letter targets the SEC, CFTC, Treasury, and Justice Departments for swift, non-legislative clarifications on crypto rules.

• It seeks tax guidance treating staking and mining rewards as taxed upon disposition, not immediate income, to ease compliance burdens.

• Signatories request dismissal of charges against Tornado Cash developer Roman Storm, viewing open-source software as protected speech, not financial crime (backed by industry consensus from over 65 groups).

Discover how crypto leaders are pushing Trump for executive action on regulations to boost innovation—explore key requests and implications for U.S. digital assets today.

What Executive Actions Is the Crypto Industry Urging President Trump to Take on Regulations?

Trump executive action on crypto regulations involves directing federal agencies to provide immediate clarity on digital asset rules without new laws from Congress. Over 65 major organizations, such as the Blockchain Association and Solana Foundation, sent a letter to the White House outlining specific steps for the SEC, CFTC, Treasury Department, and Justice Department. This push leverages the president’s pro-crypto stance to accelerate policy shifts, addressing longstanding uncertainties in taxation, DeFi, and enforcement.

How Can Treasury Guidance Simplify Crypto Taxation for Staking and Mining?

The crypto industry’s letter emphasizes targeted Treasury guidance to reform how staking and mining rewards are taxed, treating them as self-created property taxed only upon disposition rather than as immediate income. This approach, supported by data from the Blockchain Association, could reduce the annual tax burden on miners by up to 30% based on current IRS interpretations, as estimated in industry reports. For instance, bridging, wrapping, and cross-chain transactions would be clarified as non-taxable events, while de minimis rules exempt gains on purchases under $600, promoting everyday crypto use without excessive reporting.

Expert analysis from financial advisors highlights that such changes align with principles applied to traditional assets like crops or handmade goods, fostering innovation. Daniel Liu, CEO of Republic Technologies, noted in discussions with industry publications that methodical implementation is key to avoiding confusion. The Treasury’s ongoing review of international crypto tax reporting under the Crypto-Asset Reporting Framework further underscores the urgency, as it involves sharing data on foreign holdings to combat evasion while balancing user privacy.

Frequently Asked Questions

What Specific Protections Does the Industry Seek for DeFi Developers from the SEC?

The letter calls for the SEC’s Crypto Task Force to issue interim guidance protecting developers of source-available, permissionless protocols from enforcement actions during rulemaking periods. This 45-word clarification would shield innovators from regulatory overreach, ensuring open-source projects like decentralized exchanges can thrive without fear of lawsuits, as evidenced by past SEC cases against similar entities.

Why Is the Justice Department Being Asked to Dismiss Tornado Cash Charges?

The Justice Department should dismiss charges against Roman Storm, convicted in August for operating Tornado Cash as an unlicensed money transmitter, because his work involved publishing open-source software, not a financial crime. This natural request echoes concerns over privacy tools like Samourai Wallet, where developers faced prison sentences, promoting a balanced view of blockchain technology as protected expression.

Key Takeaways

• Executive Power Push: The letter highlights Trump’s ability to direct agencies for quick wins, building on achievements like nullifying the IRS Broker Rule and passing the GENIUS Act for stablecoins.
• Tax Relief Focus: Guidance on non-taxable events and de minimis exemptions could save users millions in compliance costs, per industry estimates from groups like Coinbase.
• DeFi Safeguards: Updated FinCEN rules confirming non-custodial software exemptions under the Bank Secrecy Act would prevent fragmentation, as supported by Republic Technologies’ CEO Daniel Liu.

Conclusion

In summary, the crypto industry’s urgent call for Trump executive action on crypto regulations targets essential clarifications from key agencies to resolve taxation ambiguities, protect DeFi innovators, and dismiss unjust charges against developers like Roman Storm. By acknowledging past wins such as the GENIUS Act while pushing for more, these over 65 organizations aim to solidify the U.S. as the world’s crypto hub. As Trump’s CFTC nominee Mike Selig advances and Treasury rules evolve, stakeholders should monitor developments closely—staying informed positions investors and builders to capitalize on upcoming policy shifts.

The coordinated effort reflects growing impatience with legislative delays, drawing on Trump’s pro-crypto rhetoric to drive administrative changes. Signatories, including Uniswap Labs and the Solana Foundation, stress that these actions can occur swiftly without congressional approval, potentially transforming the regulatory landscape. For taxation, the proposed treatment of staking rewards aligns with expert views that current rules stifle growth; for example, immediate taxation on mining output discourages participation in proof-of-work networks, as noted in Blockchain Association analyses.

Regulatory clarity for DeFi is equally critical. The request for SEC interim guidance protects protocol developers, recognizing permissionless blockchains as akin to open-source publishing. This stance counters recent enforcement trends, such as the Tornado Cash case, where the Justice Department’s approach has sparked debate over software freedom. FinCEN’s potential reaffirmation of its 2019 virtual currency guidance would exempt non-custodial tools from Bank Secrecy Act requirements, reducing compliance hurdles for wallets and mixers.

Broader context includes momentum from Monday’s White House review of Treasury’s international reporting rules under the Crypto-Asset Reporting Framework. This global pact enables automatic data sharing on crypto holdings, aiding IRS efforts against evasion but raising privacy flags. Meanwhile, user sentiment on platforms like Myriad Markets shows mixed views on Trump’s performance, with 44% approval among traders, underscoring the stakes for crypto policy.

Daniel Liu’s insights emphasize deliberate progress: regulators must define actions clearly to preempt state-level challenges. As the industry awaits responses, this letter represents a pivotal step toward a more innovation-friendly environment, potentially accelerating adoption and investment in digital assets across the U.S. economy.