Trump Admin's 160-Page Blueprint Aims to Make U.S. the Global Crypto Capital

White House Lays Groundwork for Crypto Regulations

The Trump administration has unveiled a comprehensive policy framework to position the United States as the global "crypto capital," according to a 160-page report released by the President’s Working Group on Digital Asset Markets. The initiative, part of Executive Order 14178, aims to establish a regulatory structure that fosters innovation while ensuring consumer protection and market integrity. The report outlines recommendations for Congress and federal agencies, including the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC), to clarify jurisdictional overlaps and modernize oversight of digital assets.

Central to the proposal is the CLARITY Act, which was passed by the House with bipartisan support in July. The legislation seeks to resolve long-standing disputes between the SEC and CFTC by categorizing digital assets into three classes: digital commodities, investment contract assets, and permitted payment stablecoins. Under the framework, the CFTC would oversee spot markets for non-security digital assets, while the SEC would retain authority over investment contract assets. The Act also mandates a "maturity" certification process for blockchain systems, allowing tokens to transition from securities to commodities after meeting specific operational and decentralization criteria. This approach aims to reduce regulatory uncertainty for issuers and investors.

The administration also prioritized stablecoin regulation through the GENIUS Act, signed into law by President Trump in July. The bill establishes a federal framework requiring stablecoins to be fully backed by high-quality assets, such as U.S. dollars or short-term Treasuries, and mandates monthly reserve disclosures by independent auditors. Only federally insured institutions may issue stablecoins under the law, which preempts state licensing requirements while preserving consumer protection laws. The Act explicitly prohibits interest-bearing stablecoins and mandates anti-money laundering (AML) compliance, aligning with broader efforts to combat illicit finance.

Tax and AML reforms are additional focal points of the White House’s strategy. The report calls for modernizing tax rules to address gaps in the treatment of staking rewards, token swaps, and in-kind redemptions for crypto exchange-traded products (ETPs). Lawmakers and industry representatives have emphasized the need for de minimis exemptions for low-value transactions and clearer guidelines for foreign investors. On the regulatory front, the Working Group urged agencies to streamline compliance for digital asset custodians and exchanges, including standardized custody requirements and expanded use of regulatory sandboxes. The SEC’s recent approval of in-kind creation and redemption processes for crypto ETPs is seen as a step toward reducing transaction inefficiencies.

The White House’s roadmap also addresses concerns over central bank digital currencies (CBDCs). The Anti-CBDC Surveillance State Act, passed by the House in July, prohibits the Federal Reserve from issuing a retail CBDC without congressional approval, reflecting the administration’s emphasis on privacy and financial autonomy. Critics argue this could hinder U.S. competitiveness in global digital currency development, but proponents stress the need to prevent surveillance risks.

While the Working Group’s report has been praised for its ambition, it has drawn scrutiny over potential conflicts of interest. The Trump family’s involvement in crypto ventures—including a bitcoin mining firm, a meme coin, and a stablecoin—has raised ethical concerns among Democrats and watchdog groups. The White House maintains that Trump’s assets are held in a trust managed by his children, but critics argue the administration’s policies could disproportionately benefit industry insiders.

The regulatory shifts signal a pivotal moment for the U.S. crypto sector, with stakeholders anticipating further refinements as the Senate debates market structure legislation. By clarifying jurisdictional boundaries and modernizing oversight, the administration aims to attract innovation while balancing risks. However, the success of these measures will depend on bipartisan cooperation, regulatory execution, and the ability to address lingering gaps in consumer protection and tax policy.