On Wednesday, the White House outlined its policy priorities for regulating digital assets, giving Congress and federal regulators detailed guidance for fulfilling President Trump’s commitment to making the U.S. a “global crypto capital.”
A comprehensive 166-page report from Trump’s Digital Asset Working Group offers recommendations for lawmakers and regulators, covering aspects from crypto surveillance to taxation.
“This is likely the most thorough document ever created regarding digital assets,” a White House official mentioned during a call with a reporter. “Industry reactions seem to indicate satisfaction with our approach.”
This report, developed in response to an executive order from January, follows months of legislative attempts to pass the Digital Assets Act.
Earlier this month, Trump signed his first significant crypto law, the Genius Act, which establishes a regulatory framework for dollar-supported digital tokens, known as Stablecoins.
Legislators are still working on clarifying regulations for other crypto markets, notably through a division of oversight between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
The House recently passed its version of the Digital Asset Market Clarity Act, while the Senate has released a draft of its own legislation.
The White House report included several recommendations for Congress, many of which are expected to be incorporated into proposed laws.
One suggestion is for lawmakers to affirm the CFTC’s authority over non-security digital assets, emphasizing that crypto users should be able to store their assets independently.
The report also calls for exceptions to rules for software providers and encourages the crypto market to determine how banks’ confidentiality laws apply.
Moreover, it urges lawmakers to pass regulations that prevent the establishment of a central bank digital currency (CBDC).
Concerns over the CBDC nearly stalled the Genius Act’s passage, as some Republican members insisted on stronger anti-CBDC measures before agreeing to move forward with various crypto bills.
Ultimately, GOP leadership consented to include anti-CBDC provisions in the National Defense Authorization Act.
As Congress continues to craft laws, the White House report advises that the SEC and CFTC should “utilize existing authorities to facilitate the trading of digital assets at the federal level.”
This could allow these key regulators considerable flexibility in advancing crypto regulations independently.
The SEC has already started to develop its stance on digital assets, rolling back rules from the Biden administration and focusing on guidance across a range of crypto-related issues, from meme coins to tokenization.
In contrast, the CFTC has been relatively quiet on crypto, currently operating with just two of its five commissioners remaining, and both might resign soon.
Banking regulators, such as the Federal Reserve and the Federal Deposit Insurance Corporation, are expected to work on clarifying crypto-related activities for banks.
The White House report cautions these regulators about the necessity of providing specific tech-based guidance while referring to past concerns known as “Operation Chalk Point 2.0.”
The crypto industry and Republicans have accused the Biden administration of discouraging banks from collaborating with crypto companies.
The report also suggests that banking regulators should create a clearer process for granting bank charters and Master accounts as crypto firms like Circle and Ripple submit their applications.
However, this could lead to future competition since the banking sector is pushing regulators to slow down these initiatives.
The report underscores Trump’s commitment to cryptocurrency as he enters a potential second term. Once referring to crypto as a “scam,” he has embraced the industry during his 2024 campaign, vowing to establish the U.S. as the “crypto capital of the world.”
Since his presidency began, Trump has appointed venture capitalist David Sack to focus on AI and cryptocurrency, hosted discussions with crypto leaders at the White House, and signed an executive order for creating strategic Bitcoin reserves and managing digital asset inventories.
However, his personal engagement with the industry is being increasingly scrutinized. Last fall, Trump and his sons launched a venture called Crypto Venture, World Liberty Financial.
Additionally, he introduced a Memecoin just before assuming office and met with prominent investors earlier this year. Nonetheless, his media organization has faced challenges in providing crypto-related assets.
