Trump Shifts Digital Policy: Embracing Crypto, Banning CBDCs to Boost Innovation

The Trump administration has unveiled a comprehensive strategy to position the United States as a global leader in digital asset markets, with the establishment of a Digital Asset Treasury Company as a cornerstone initiative. This move follows the release of a report by the President's Working Group on Digital Asset Markets, which outlines a roadmap to foster innovation, regulatory clarity, and consumer protection in the digital asset sector. The group, mandated by Executive Order 14178, was tasked with recommending policies to strengthen American leadership in blockchain technology and digital financial systems.

Central to the strategy is the creation of a regulatory framework that supports the growth of private-sector digital assets while addressing risks such as illicit finance and market instability. The Working Group emphasized the need for Congress to enact legislation closing regulatory gaps, including granting the Commodity Futures Trading Commission (CFTC) oversight of non-security digital asset spot markets. It also urged the Securities and Exchange Commission (SEC) and CFTC to expedite the trading of digital assets at the federal level through tools like regulatory sandboxes.

The administration's approach diverges sharply from previous policies, which prioritized central bank digital currencies (CBDCs). Instead, the new framework explicitly bans CBDC development in the U.S., framing it as a threat to financial stability and individual privacy. The Working Group also proposed modernizing bank regulations to facilitate digital asset custody, tokenization, and stablecoin issuance, while aligning capital rules with actual risk profiles. A key legislative achievement under this agenda is the GENIUS Act, signed in July 2025, which establishes the first federal regulatory framework for stablecoins, aiming to modernize payment systems and reduce reliance on legacy infrastructure.

Parallel to these regulatory efforts, the SEC has taken steps to lower barriers for banks entering the digital asset space. In January 2025, the agency rescinded its controversial Staff Accounting Bulletin 121 (SAB 121), which had imposed onerous capital requirements on institutions holding custodied crypto assets. The replacement, SAB 122, allows banks to treat crypto custody obligations using standard contingent liability principles, significantly reducing compliance costs and enabling broader adoption of institutional-grade custody services. This shift has been hailed by industry stakeholders as a critical step toward integrating digital assets into mainstream finance.

The Trump administration's digital asset strategy also includes exploring the creation of a national digital asset stockpile, a concept aimed at treating digital assets as strategic reserves akin to gold or foreign currencies. While the feasibility of such a initiative remains under evaluation, it signals a paradigm shift in how the U.S. government perceives digital assets-from a focus on enforcement to potential strategic utility. The Working Group's report also highlighted the importance of combating illicit finance through modernized anti-money laundering (AML) rules, while safeguarding privacy and civil liberties.

The broader economic implications of these policies are significant. By fostering a pro-innovation environment, the administration aims to attract global talent and capital to U.S. markets, reinforcing the nation's leadership in blockchain technology. The Working Group's recommendations also address tax challenges, urging the Treasury and IRS to issue guidance on topics like crypto mining and staking to reduce compliance burdens for businesses and individuals.

[1] Fact Sheet: The President's Working Group on Digital Asset Markets Releases Recommendations to Strengthen American Leadership in Digital Financial Technology (https://www.whitehouse.gov/fact-sheets/2025/07/fact-sheet-the-presidents-working-group-on-digital-asset-markets-releases-recommendations-to-strengthen-american-leadership-in-digital-financial-technology/)

[2] White House Embraces Crypto as SEC Opens Door for Banks (https://natlawreview.com/article/white-house-embraces-crypto-sec-opens-door-banks)