On Wednesday, the White House issued its first formal federal report detailing the future U.S. government strategy for Bitcoin and cryptocurrency regulation.
Executive Order 14178 established the President’s Working Group on Digital Asset Markets earlier this year, and the 22-page paper is the administration’s first comprehensive crypto plan since Donald Trump took office again in January.
The research is intended to fulfill Trump’s campaign pledge to establish America as “the crypto capital of the world,” according to the Working Group.
The Working Group presented new legislative and regulatory recommendations that address all facets of the cryptocurrency business, from banking and taxes to decentralized finance (DeFi) and stablecoins. The Working Group was led by top officials from various government institutions.
In order to close legal loopholes, reduce bureaucratic red tape, and maintain American leadership in what the administration now refers to as the “Golden Age of Crypto,” the paper outlines how Congress, the SEC, the CFTC, the IRS, and other financial authorities should act quickly.
Congress called for CFTC authority and DeFi access expansion
In its opening statement, the Working Group urged Congress to enact legislation that would authorize the CFTC to oversee cryptocurrency spot markets that aren’t securities.
Lawmakers must act, it stated, citing the recent bipartisan House vote on the CLARITY measure as a starting point. Additionally, the paper emphasized the need of adopting DeFi and called on the government to “acknowledge the potential of integrating such technology into mainstream finance.”
The CFTC and SEC were instructed to cease taking too long to approve trade at the federal level. It was suggested that they promptly provide new guidelines addressing recordkeeping, custody, registration, and other regulatory loopholes.
In order to avoid delays that have impeded innovation, the paper also recommended the usage of regulatory sandboxes and safe harbors. The report said, “We need clarity now.” “And we require it across the board.”
The White House demands action on taxes, bank regulations, and stablecoins.
The research also addressed banking access, a problem that cryptocurrency entrepreneurs have long faced. In reference to unofficial attempts by agencies to dissuade banks from doing business with cryptocurrency companies, it said that the government had “ended Operation Choke Point 2.0 once and for all.”
According to the Working Group, this has to be replaced with a solid framework that allows banks to provide services like tokenization, custody, and stablecoin issuance without being constrained by ambiguous regulations.
It demanded that government authorities streamline the application process for banks seeking government Reserve master accounts and licenses, and it asked for a complete relaunch of crypto innovation efforts. In addition, it suggested that capital regulations for banks should take into account the true risk of assets based on blockchain technology rather than being predicated on apprehension or lack of knowledge.
Future payment systems’ usage of the US dollar was the subject of the second part of the paper. The GENIUS Act was signed into law by Donald Trump on July 18, 2025, establishing the nation’s first legal stablecoin foundation.
The Treasury and bank regulators are now urged to “faithfully and expeditiously implement the GENIUS Act,” according to the report. Additionally, in response to Trump’s previous executive order, it supports proposed legislation known as the Anti-CBDC Surveillance State Act, which would permanently prohibit the Federal Reserve from issuing a central bank digital currency.
On financial crime, the Working Group advocated for changes to anti-money laundering (AML) legislation. It urged the Treasury and other authorities to explain how the Bank Secrecy Act applies to cryptocurrency enterprises and what information must be submitted.
Additionally, it supported Congress in outlining the AML/CFT responsibilities of platforms operating in DeFi and acknowledging the legitimacy of self-custody. The study stated, “We must target real threats while protecting privacy.” “Regulators should refrain from abusing their power to target law-abiding citizens.”
Lastly, the study urged the Treasury and IRS to update the nation’s antiquated crypto tax laws. It requested new guidelines on wrapping, CAMT, and small cryptocurrency transactions that are subject to de minimis limits. Additionally, it called for a thorough examination of previous IRS decisions on mining and staking.
In its broadest suggestion, it requested that Congress establish a new category of assets for cryptocurrency under federal tax law. Bitcoin and other assets would be treated as securities or commodities under the new regulations. It also stated that in order to prevent tax evasion schemes, cryptocurrency ought to be included in the list of wash sale regulations.
