The White House Releases Major “Cryptocurrency Policy Report”: A Comprehensive 168-Page Disclosure of Regulatory Directions and Key Highlights.

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Digital Asset Classification System

Cryptocurrency Strategic Reserves

Deregulating Bank Regulations, Embracing Stablecoins

Establishing Clear Tax Regulations

The report first emphasizes the need to establish a clear “digital asset classification system” to clarify which cryptocurrencies fall under securities and which are considered commodities. According to the recommendations, the regulatory authority over cryptocurrencies should be jointly shared between the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC), with the CFTC responsible for regulating the spot market.

The working group suggested that commodity-like tokens should be governed by the CFTC, while those deemed securities should be overseen by the SEC. The authors of the report believe that establishing a clear market structure will help the United States achieve a leadership position in the global digital asset sector.

SEC ### Paul Atkins responded, stating:

“Developing a reasonable regulatory framework for digital assets is the best way to stimulate innovation in the United States, protect investors from fraud, and maintain the global leadership of capital markets.”

In March of this year, President Trump proposed the establishment of a digital asset reserve and strategic Bitcoin reserves through an executive order. He instructed the Secretaries of Commerce and Treasury to formulate a budget-neutral strategy that does not increase the burden on American taxpayers for acquiring additional Bitcoin.

According to the executive order, the digital asset reserve will not increase assets through active purchases but will only accept digital assets obtained through forfeiture procedures. According to a report released this Wednesday, the working group noted that both the strategic reserves and asset reserves will be managed by the U.S. Department of the Treasury and will use “forfeited digital assets” as the source of reserve funds. The report also pointed out that these Bitcoins are typically not sold but are retained as reserve assets for governmental purposes that comply with legal requirements.

Although the report does not delve deeply into the follow-up plans for Bitcoin reserves, senior officials indicated that the plan falls under another executive order issued by Trump, and the Treasury Department is currently moving forward with it, with relevant details to be announced soon.

Deregulating Bank Regulations, Embracing Stablecoins

Meanwhile, the report also suggested relaxing bank regulations to allow banks to legally custody crypto assets and provide related services. Regulatory agencies should simplify the licensing process for banks and make requirements more transparent.

The report also touched on stablecoins and the payments sector, arguing for the embrace of stablecoins to maintain the dollar’s dominance globally and reiterating support for the “Anti-Surveillance Digital Dollar Act,” advocating against the development of a U.S. Central Bank Digital Currency (CBDC).

Establishing Clear Tax Regulations

Finally, the report recommended that federal-level tax policies should “recognize the uniqueness of digital assets.” The report stated:

“The Treasury and the Internal Revenue Service (IRS) should issue clear guidance on several issues, including how to account for unrealized gains and losses for non-stock and non-partnership equity investment assets when calculating ‘adjusted financial statement income’; whether the wrapping and unwrapping of transactions should be treated as taxable events; and whether small amounts of income from digital assets should be subject to taxation.”

Additionally, the White House working group called on policymakers to maintain an open attitude towards decentralized finance (DeFi). Legislatures should carefully consider how the control of software operates and whether these technologies can realistically comply with existing regulations.