Bitcoin News Today: White House crypto report leaves Bitcoin reserve unaddressed amid mixed industry reactions

The White House on January 23 released its comprehensive 166-page report on digital assets, which outlines a range of policy recommendations for the cryptocurrency industry. Despite high expectations, particularly from Bitcoin advocates, the document omitted any substantial discussion on the development of a Strategic Bitcoin Reserve, a concept introduced by the administration just three days earlier through an executive order [1]. The report does reference the reserve briefly at the end, but it merely reiterates the terms from the original executive order without offering new guidance or direction [1].

The lack of forward movement on the Bitcoin reserve has drawn criticism from some in the crypto community. CJ Burnett, chief revenue officer of Compass Mining, described the omission as a “missed opportunity” and a source of “unnecessary uncertainty” that could hinder the U.S.’s position in the global crypto space [1]. Similarly, Bitcoin influencer George Bodine called the inaction a “betrayal of trust” by the government [1]. Others, however, have taken a more measured view. Calvin Ayre, a Canadian blockchain investor, acknowledged that the report was a step forward in recognizing Bitcoin as a distinct and strategic asset [1]. Susie Violet Ward, a Bitcoin journalist, echoed this sentiment, noting that the report marks a policy shift in how Bitcoin is perceived and discussed [1].

Beyond the reserve, the report includes detailed proposals for updating crypto regulations. It outlines a three-phase strategy for implementation: the “demolition phase,” where outdated rules from the previous administration are removed; the “construction phase,” where lawmakers collaborate with the industry to create supportive legislation; and the “implementation phase,” where these laws are passed [1]. One of the key recommendations is the creation of a “taxonomy” for digital assets to clarify whether they are considered securities or commodities. The report also suggests that oversight of crypto should be shared between the Commodity Futures Trading Commission and the Securities and Exchange Commission, with the CFTC taking charge of spot markets [1].

The report also recommends that banks be allowed to custody crypto and offer related services to clients, alongside streamlining the process for obtaining banking charters. On the taxation front, the administration proposed treating digital assets as a new class of assets, subject to modified tax rules applicable to securities or commodities [1]. These proposals reflect a broader goal of fostering crypto adoption and ensuring a regulatory environment that supports, rather than stifles, the industry’s growth.

Bo Hines, executive director of the President’s Council of Advisers on Digital Assets, emphasized that the administration’s aim is to prevent a regression into a more restrictive regulatory framework, referencing the “Operation Chokepoint 2.0” policies of the previous administration [1]. However, the absence of progress on the Bitcoin reserve means that, at least for now, the U.S. will not establish a government-backed asset similar to El Salvador’s model [1].

Source: [1] White House crypto report bitcoin reserve (https://cointelegraph.com/news/white-house-crypto-report-bitcoin-reserve)