Cryptocurrency Identity System Humanity Protocol Obtains $20 Million Investment, Guided by Pantera and Jump Cryptocurrency
In a significant move for the digital asset industry, President Trump's administration has proposed a coordinated, multi-agency regulatory framework to guide the sector's growth and ensure consumer protections.
The President’s Working Group for Digital Asset Markets, established within the National Economic Council, is spearheading this initiative. The group, which includes key federal agencies such as the Treasury, SEC, CFTC, Justice, Commerce, and Homeland Security, aims to promote innovation, protect consumers, and reduce regulatory uncertainty.
The Working Group's detailed 163-page report, titled Strengthening American Leadership in Digital Financial Technology, outlines a strategy that includes comprehensive federal oversight, regulatory clarification, and legislative recommendations. One of the key recommendations is to empower the Commodity Futures Trading Commission (CFTC) to regulate spot markets for non-security digital assets, filling existing regulatory gaps.
The Securities and Exchange Commission (SEC) and CFTC remain the primary regulators of digital asset markets. The framework calls for these agencies to shift from a primarily enforcement-based approach to one emphasizing clear regulatory rules. This includes registration, custody, trading, and recordkeeping requirements to enable broader, compliant participation in digital asset markets.
The framework also encourages the embracement of decentralized finance (DeFi) technologies and the creation of regulatory "safe harbors" and sandboxes to foster innovation without unnecessary bureaucratic barriers.
In addition to these measures, the Working Group has highlighted the need for new tax legislation and guidance that takes into account the unique characteristics of digital assets to ensure fairness, predictability, and to support the growth and use of digital assets in the U.S.
The strategy also emphasizes enhanced efforts against illicit finance risks posed by digital assets, targeting terrorists and criminal organizations, while balancing fostering innovation with protecting the financial system.
Meanwhile, in the private sector, Humanity Protocol, a decentralized digital identity company, has completed a $20 million fundraising round. Co-led by Pantera Capital and Jump Crypto, the fundraising was closed at a fully diluted valuation of $1.1 billion. Humanity Protocol plans to use the fresh capital to roll out its product on a larger scale.
The company's system uses palm scans to verify the authenticity of online accounts, allowing people to prove they are human without revealing personal details. This need for decentralized digital identity verification platforms is growing due to the rapid adoption of artificial intelligence.
The crypto market is in a bullish mood following the election of President Trump, with the regulatory clarity provided by his administration's framework being a significant factor. Commissioner Hester Pierce is leading the SEC's Crypto Task Force, further contributing to the development of a clear regulatory framework for the industry.
In summary, President Trump's administration has proposed a comprehensive regulatory framework that seeks to clarify oversight roles, promote innovation in digital assets and blockchain technology, and modernize financial laws to maintain U.S. leadership in this sector while ensuring security and consumer protections.
- The Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC), key federal agencies in the President's Working Group for Digital Asset Markets, are tasked with shifting from an enforcement-based approach to one emphasizing clear regulatory rules for investing in digital assets, including registration, custody, trading, and recordkeeping requirements.
- The President's Working Group has also emphasized the importance of new tax legislation and guidance that takes into account the unique characteristics of digital assets, as well as encouraging the embracement of decentralized finance (DeFi) technologies and the creation of regulatory "safe harbors" and sandboxes for technology innovation.
