The administration’s Digital Asset Working Group urges SEC CFTC cooperation, eased bank regulations, and a halt to CBDC development as part of sweeping crypto reform.
In a long anticipated move, the Trump administration has released its formal report on cryptocurrency regulation in the United States. The President’s Working Group on Digital Assets, a coalition of federal financial regulators and policy advisors, published the report on Wednesday, calling for jurisdictional clarity, tax reform, stablecoin guidelines, and pro-bank innovation measures.
The report lays out a vision for maintaining U.S. leadership in crypto while minimizing investor risk and halting the rise of surveillance based digital currencies. Even though many of the ideas still echo previous statements made by administration officials, the final report adds legislative urgency and renewed coordination between agencies like the SEC and CFTC.
The timing is significant. As cryptocurrency gains ground not only as an investment but also as a potential part of retirement and mortgage policy, the federal government is under pressure to modernize its approach to oversight and taxation.
Dividing Oversight Between the SEC and CFTC
One of the report’s cornerstone recommendations is the division of regulatory authority between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). The document proposes that cryptocurrencies identified as commodities, like Bitcoin, should fall under the CFTC’s jurisdiction, while security tokens should remain within the SEC’s oversight.
This dual agency model seeks to address years of legal uncertainty that have frustrated both innovators and investors. The report emphasizes that a clearly defined crypto market structure could boost investor confidence and strengthen U.S. competitiveness.
SEC Chair Paul Atkins responded to the proposal, stating,
“A rational regulatory framework for digital assets is the best way to catalyze American innovation, protect investors from fraud, and keep our capital markets the envy of the world.”
Making the U.S. Dollar Digital Ready Through Private Innovation
Another major policy recommendation involves easing restrictions on bank participation in crypto markets. The report advocates allowing federally regulated banks to custody digital assets and provide crypto related services, such as staking, trading, and lending. In addition, it calls for banking regulators to streamline the chartering process and remove opaque requirements that have limited bank involvement.
This proposal is consistent with broader efforts from the Trump administration to stimulate competition in the financial sector and position the U.S. banking system as a crypto friendly infrastructure provider. If adopted, it could give banks a larger stake in the next wave of financial technology.
Stablecoins also receive substantial attention. The report reaffirms their importance in preserving the hegemony of the U.S. dollar in global payments. Even though the authors differentiate stablecoins from central bank digital currencies (CBDCs), they acknowledge the similarities between the two, especially when it comes to programmable enforcement.
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No to CBDCs, Yes to Privacy and Innovation
The Trump administration’s stance on CBDCs is unwavering. The report explicitly warns that central bank issued digital currencies could erode privacy, lead to government overreach, and centralize financial power in ways that clash with American values.
So, instead of exploring a digital dollar, the working group suggests focusing on private sector stablecoins backed by the U.S. dollar, combined with law enforcement access when warranted. This position mirrors growing concerns among conservatives that a digital dollar could one day be used for mass surveillance, economic discrimination, or political targeting.
The administration’s support of the GENIUS stablecoin bill, signed earlier this year, underscores its commitment to nurturing privately issued, U.S. backed tokens over state controlled alternatives.
The Political and Economic Implications
This report represents a political roadmap. As crypto becomes a talking point in U.S. policy debates, particularly around monetary sovereignty, economic freedom, and financial innovation, the Trump administration is staking its ground.
By supporting stablecoins and opposing CBDCs, the report sends a clear message about the kind of digital financial system the administration envisions: private sector-led, innovation-friendly, and freedom-focused.
The release of the Trump administration’s long-awaited crypto report marks a defining moment for U.S. digital asset policy. With its recommendations on regulatory clarity, banking reform, tax policy, and a firm stance against CBDCs, the document provides a roadmap for lawmakers, regulators, and financial institutions alike.
Still, the future of crypto regulation in the U.S. will depend heavily on legislative action. The coming months will show whether Congress is prepared to act on these proposals or allow regulatory ambiguity to persist.
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