Donald Trump Jr. announced plans to launch a decentralized finance (DeFi) crypto platform that will challenge the traditional banking system and address financial inequality. Meanwhile, some crypto industry leaders met with U.S. lawmakers asking for regulatory clarity in the digital asset space, particularly as the Biden administration is figuring out its stance on crypto policy. Additionally, the Crypto Market Integrity Coalition (CMIC) also called for a clearer regulatory framework for digital assets, and a new proposal seeks to establish a Bitcoin tax-free Digital Economic Zone (DEZ) to improve the US’s digital economy.
Trump Jr. Plans to Take on Banks with Crypto Platform
Donald Trump Jr. announced plans to launch a new decentralized finance (DeFi) cryptocurrency platform to address inequality in banking access. At a Q&A session on the subscription-based platform Locals on Aug. 8, Trump Jr. shared that this initiative is not a meme coin but rather a broader platform that is designed to challenge the traditional banking system. Although Trump Jr. did not share many details about the platform, he hinted that the project would take some time to materialize and did not provide a specific timeline.
Trump Jr. is concerned about the current banking system as only certain people can access financing, which has led to inequality. He stated that the concept of decentralized finance is particularly appealing to him, especially when considering his own experiences with being ”debanked.”
Rumors about a new crypto offering from Tump Jr. started to circulate after he mentioned DeFi in a tweet on Aug. 7, where he suggested that something big was in the works. His brother, Eric Trump, shared similar posts on social media, indicating his newfound interest in crypto and DeFi.
However, both Trump brothers recently took the opportunity to distance themselves from the Restore the Republic (RTR) meme coin, which experienced a surge and subsequent crash because of false rumors of association with the Trump family. Eric Trump called the rumors ”absolutely false,” which led to a 70% drop in the RTR token’s value.
Trump Jr. also issued a warning to the crypto community and advised them to be very cautious of fake tokens claiming ties to the Trump family. He assured his followers that any official project would be announced directly by the family and would be designed to be fair for everyone.
US Lawmakers Meet with Crypto Leaders
Crypto and politics also recently mingled when several representatives from major crypto firms, including Coinbase, Kraken, Ripple, and Circle, participated in a video call with United States lawmakers and officials from the Biden administration and Kamala Harris’ staff on Aug. 8. The discussion focused on how the Biden administration might adjust its approach to crypto policy as President Joe Biden’s term nears its end in January 2025.
During the virtual event, crypto industry leaders, including Coinbase Global chief legal officer Paul Grewal, Kraken CEO David Ripley, Ripple CEO Brad Garlinghouse, and Circle CEO Jeremy Allaire, placed a lot of emphasis on the need for regulatory clarity in the digital asset space. They also hinted at the potential removal of Securities and Exchange Commission (SEC) Chair Gary Gensler, who has faced a lot of criticism for the SEC’s enforcement actions against crypto firms without providing a clear legal framework for their operations in the U.S.
California Representative Ro Khanna organized the meeting between the crypto executives and U.S. policymakers, which included some key figures like National Economic Council director Lael Brainard, White House deputy chief of staff Bruce Reed, and Harris’ senior adviser Kristine Lucius.
This meeting happened after an in-person roundtable discussion in July that was also organized by Khanna, which included Biden’s senior adviser Anita Dunn, who has since joined a Democratic political action committee supporting Harris’ campaign.
There has been speculation about Harris’ potential crypto platform, especially since President Biden announced in July that he would not seek reelection in 2024. In contrast, Republican nominee Donald Trump has openly embraced crypto by accepting campaign contributions in crypto, pledging to fire Gensler if reelected, and opposing the introduction of a U.S. central bank digital currency.
Crypto Coalition Pushes for Clear U.S.Crypto Regulation
The Crypto Market Integrity Coalition (CMIC) has also urged the Biden administration to establish a clearer regulatory framework for digital assets, arguing that doing so would bring great economic and national security benefits to the United States. In a letter addressed to President Joe Biden and Vice President Kamala Harris on Aug. 7, CMIC pointed out the need for ”clear rules of the road” to protect U.S. consumers, promote the U.S. dollar, and maintain America’s technological leadership.
CMIC also mentioned the importance of U.S.-dollar backed stablecoins, which represent more than 97.5% of the $164 billion stablecoin market. According to CMIC, these stablecoins are a critical element in reinforcing democratic principles, financial inclusion, and the rule of law within the digital economy.
While CMIC did acknowledge the SEC’s role in stopping market manipulation, money laundering, and fraud through strict enforcement, the coalition argued that these efforts are good enough without a well-defined regulatory framework.
The coalition also pointed to the Financial Innovation and Technology for the 21st Century Act and the Digital Commodities Act as key legislative measures that could provide the necessary clarity for U.S. firms operating in the crypto space.
Meanwhile, another crypto advocacy group known as The Digital Chamber, announced plans to deliver a letter to every U.S. senator, advocating for the integration of Bitcoin into the nation’s financial strategy.
The letter supports a bill that was introduced by Wyoming Senator Cynthia Lummis, which proposes that the U.S. Treasury establish Bitcoin vaults and buy at least 1 million Bitcoin over five years under the Boosting Innovation, Technology, and Competitiveness through the Optimized Investment Nationwide Act of 2024.
U.S. Plans Bitcoin Tax-Free Zone
Meanwhile, a new proposal in the United States aims to establish the country as a global leader in the digital economy by creating a Bitcoin tax-free Digital Economic Zone (DEZ). The proposal is spearheaded by the newly formed USABTC policy group, and advocates for a zone where Bitcoin can be traded and accumulated without capital gains taxes. However, a tax will be applied upon redemption.
Screenshot of USABTC proposal (Source: USABTC)
The USABTC believes this DEZ could secure the U.S.’s financial future by encouraging a more resilient and innovative economic environment, while still maintaining the central role of the U.S. dollar. Rather than an outright government purchase of Bitcoin, which the proposal argues would be unfeasible and politically challenging, the DEZ will allow tax-free Bitcoin transactions in a regulated framework.
This approach could attract investors and encourage wealth growth as the exit tax on Bitcoin conversions back to traditional currency provides a new revenue stream for the government.
As part of the plan, the USABTC also plans on creating a pegged Bitcoin system on a layer-2 solution to ensure efficient and secure transactions. The proposal also plans a phased implementation, starting with an executive directive from the President to authorize the use of the Exchange Stabilization Fund (ESF) in the U.S. Treasury, followed by legal, legislative, and public outreach efforts to gather support.
The Internal Revenue Service (IRS) will collaborate in establishing a robust legal framework and approving the proposed tax structure. According to USABTC, this initiative could position the U.S. as a leader in the digital economy while still protecting against government overreach by enshrining the right to self-custody into law.
The implementation of USABTC’s plan is slated to start in 2025, and the DEZ is expected to become fully operational by 2026, pending all necessary legislative and regulatory approvals.
This article was originally Posted on Coinpaper.com
