The U.S. government recently took a significant step in the realm of digital assets by releasing its first comprehensive federal report on cryptocurrency regulation. This pivotal document, produced by the White House Working Group on Digital Asset Markets, spans 168 pages and is the product of an executive order issued in January. With a clear vision, the report aims to establish a robust regulatory framework for cryptocurrencies, stablecoins, and decentralized finance (DeFi) under President Donald Trump’s administration.
One of the central themes of the report is the urgent need for legislative and regulatory action. The Working Group emphasizes that swift measures are vital for maintaining the U.S. as a global leader in crypto innovation. Consequently, it has urged Congress to pass legislation that would afford the Commodity Futures Trading Commission (CFTC) explicit authority to regulate spot markets for non-securable crypto assets, marking a pivotal shift in oversight for this burgeoning sector.
In its exploration of DeFi, the report advocates for the integration of this innovative technology into the mainstream financial ecosystem. It encourages federal agencies like the Securities and Exchange Commission (SEC) and CFTC to expedite the approval process for crypto trading, thereby providing clarity on registration, custody, and recordkeeping requirements. Furthermore, the document suggests the creation of regulatory sandboxes—safe spaces for experimentation—to foster innovation while mitigating risks associated with regulatory delays.
Banking access for crypto firms emerged as another significant focus of the report. It confirms the end of Operation Choke Point 2.0, an informal initiative that sought to deter banks from engaging with cryptocurrency companies. Instead, the report calls for a stable and supportive regulatory framework that would enable banks to offer services like custody, tokenization, and stablecoins without excessive restrictions. The recommendation that capital rules for banks be based on the actual risks associated with blockchain assets marks a progressive step toward regulatory acceptance.
Moreover, the report outlines the administration’s backing of key legislative measures, such as the GENIUS Act, which establishes the U.S.’s first federal stablecoin framework. It also endorses the Anti-CBDC Surveillance State Act, aimed at permanently prohibiting the Federal Reserve from initiating a central bank digital currency (CBDC). On matters of financial crime, the Working Group has called for updates to anti-money laundering (AML) laws, urging clearer guidelines on the application of the Bank Secrecy Act to cryptocurrency entities. This is especially pertinent in light of a growing need to balance privacy rights with the effective targeting of genuine threats.
The report calls upon the IRS and Treasury to revamp crypto tax policies, recommending updated guidance for small transaction tax reporting and the potential creation of a new asset class under federal tax law that would treat cryptocurrencies like Bitcoin as securities or commodities. This move aligns with the broader goal of fostering a crypto-friendly environment while simultaneously preventing tax avoidance practices.
Interestingly, despite significant expectations, the report does not address any plans for a federal Bitcoin reserve or digital asset stockpile, a policy previously championed by the administration. This absence follows an executive order in March 2025 that prompted the Working Group to assess the feasibility of such a national digital asset stockpile. Officials have indicated that the Treasury is still actively working on the necessary infrastructure for a potential Bitcoin reserve, with updates anticipated soon.
This report is viewed as a foundational document that will guide federal agencies and lawmakers as they shape a cohesive strategy for the rapidly evolving crypto landscape. Its emphasis on regulatory clarity and interagency collaboration is indicative of a broader legislative momentum, particularly with the recent passage of the first congressional bill concerning stablecoin regulation.
The release has generated considerable anticipation among industry stakeholders and policymakers, who recognize it as a critical step toward establishing a unified national strategy for digital assets. As global interest in cryptocurrency regulation continues to amplify, the U.S. is poised to reaffirm its position as a leader in the digital finance space.
