White House Crypto Report On Regulation and Bitcoin Reserve

Trump’s administration has released the much-anticipated crypto policy report, which focuses on the U.S. creating a comprehensive regulatory framework for the crypto industry. Notably, the White House crypto report failed to provide new updates on the Strategic Bitcoin Reserve plans.

Details About The White House Crypto Report

Donald Trump’s Digital Asset Working Group has released a 166-page report, in which it urged regulators to provide regulatory clarity for crypto trading and to promote easy adoption. The group noted that this will ensure that the U.S. leads the crypto revolution and “ushers in the Golden Age of Crypto.”

As CoinGape earlier reported, the White House crypto report was expected to propose the creation of a Strategic Bitcoin Reserve, as mandated by Trump in his January executive order. However, the report failed to provide anything new on the reserve plans.

However, a White House official confirmed that plans are still underway to create the Bitcoin Reserve and Crypto Stockpile. The reserve and stockpile will contain assets that the U.S. government had lawfully seized through its law enforcement agencies.

Meanwhile, the report focused on the regulatory aspect, which was also an area that Trump had mandated them to recommend policies on. As part of the report, the Working Group urged Congress to pass the CLARITY Act to eliminate regulatory gaps regarding the CFTC’s oversight of non-security crypto assets.

As CoinGape reported, Congress is already working on this, as the Senate Banking Committee recently released the draft market structure bill. Meanwhile, the House’s version of the CLARITY Act has already passed and is on the Senate floor.

Similar to what the market structure bill provides, the White House crypto report also urges the SEC and CFTC to establish rules that address issues such as registration, custody, and trading to enable crypto trading at a federal level.

The Working Group also urged the regulators to cut the bureaucratic delays so that crypto products can reach consumers quickly. This is significant considering how the SEC has a 240-day window before it either approves or denies a spot crypto ETF.

Working Group Also Addresses Banking Regulators

The White House crypto report also addressed banking regulators, urging them to clarify “permissible bank activities” regarding the use of stablecoins and blockchain technology. Furthermore, the Working Group also wants these regulators to provide clarity on how crypto firms can obtain bank charters and ensure that bank capital rules capture crypto-related risks.

This is very important, especially with crypto firms such as Ripple and Circle seeking a national banking license. It is worth noting that the Federal Reserve, FDIC, and OCC are already working towards providing clarity and recently issued a statement, confirming that the current banking practices also apply to crypto custody.

Meanwhile, the White House crypto report recommended that regulators and the Treasury Department provide clarity on crypto firms’ obligations regarding the Bank Secrecy Act and reporting requirements to curb money laundering.

Lastly, the Working Group addressed crypto tax rules, urging Congress to treat digital assets as a new asset class that will be subject to modified versions of tax rules that apply to commodities and securities. They also recommend legislation that subjects cryptocurrencies to wash sale rules.

Notably, pro-crypto Senator Cynthia Lummis already introduced a crypto tax bill that will eliminate double taxation on crypto sales. It also proposes a de minimis exemption for crypto transactions under $300.