With the recent conclusion of the government shutdown, the crypto industry is seizing the opportunity to submit major regulatory requests to the White House before the end of the year.
December promises to be a pivotal month for digital assets, especially under the administration of President Donald Trump, who 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 Department and the Internal Revenue Service (IRS) on several policy initiatives, putting the Institute at the forefront of this pressure.
The letter emphasizes that as Congress continues its legislative work, President Trump’s administration is able to make important changes that could deliver quick wins for the industry.
One of the key requests outlined in the letter is the need for tax clarity. The industry is looking for comprehensive guidance on various technical aspects, including staking, mining, airdrops, cross-chain transactions, collateral pledging and charitable donations.
In concrete terms, the crypto sector advocates clearer tax rules that prevent taxation of unrealized income, thereby promoting the alignment of tax rules with economic reality.
There is a push for the Ministry of Finance to offer revisions that are decisive staking and mining rewards as property that is taxed on disposal, based on established tax principles governing the sale of assets.
Another crucial request focuses on regulatory certainty. The industry is calling for defined rules that would support developers, decentralized finance protocols (DeFi), and self-management of digital assets. The request includes provisions for emergency assistance and safe harbors within existing regulatory frameworks.
The letter also emphasizes the need for DeFi protection and innovation. It calls for updated and robust guidance from the Financial Crimes Enforcement Network (FinCEN). cyber security measures to foster a thriving decentralized project ecosystem in the US.
In addition, there is 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 is cited as a model
Another key point in the letter concerns the call 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 government’s commitment to protecting developers and recognize that the publication of open source software is a form of speech protected under the First Amendment.
Additionally, the letter lays out requests to improve U.S. software development by advocating the adoption of safe harbors and regulatory sandboxes for DeFi projects and developers.
This would enable the launch of tokens and protocols, promoting digital asset innovation by creating user-friendly web interfaces. The industry points to SEC Commissioner Hester Peirce’s Token Safe Harbor Framework as a model for such proposals.
In addition to these requests, there is also anticipation for the upcoming Market Structure Law, which aims to provide greater clarity in the digital asset landscape.
Markup sessions are reportedly underway for this important legislation planned for early December, indicating that major developments may be imminent as the year draws to a close.
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