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Source: https://www.whitehouse.gov/wp-content/uploads/2025/07/Digital-Assets-Report-EO14178.pdf

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Pro-Crypto SEC Reform and Future Plans: A Deep Dive into the White House Crypto Report

On July 30th, the White House released a report for strengthening digital finance, with a link to the full report at the bottom which redirects to a page titled crypto, followed right after the White House governmental domain.

Considering that we now have an official page on cryptocurrency from a government, especially it being a major force such as the U.S., this already sets them up to be a regulation & innovation leader for digital assets worldwide.

The 166-page report includes points such as an overview of the crypto ecosystem, market structure, banking, stablecoins, countering illicit finance, taxation, and perhaps most importantly of all - SEC recommendations.

Let’s dive into the details of the report to understand the implications of it.

The Details of the Crypto Report

In January of this year, President Donald J. Trump signed Executive Order 14178, titled "Strengthening American Leadership in Digital Financial Technology." This marked a national pivot, transforming the U.S. government's posture toward digital assets from cautionary to outright promoting it. The Executive Order established the President’s Working Group on Digital Asset Markets, tasking it with producing a detailed roadmap for regulatory and legislative reform within 120 days. That roadmap is now published as a comprehensive report outlining the administration's pro-crypto stance, sweeping recommendations, and a vision for America as the global leader in blockchain innovation.

Prior regulatory regimes, particularly under the Biden administration, pursued digital assets with skepticism and suppression, this report calls for clarity, inclusion, innovation, and sovereignty.

I. The Significance of the Report

1.1 Recognition of Digital Assets as a Strategic Industry

The report frames blockchain and digital asset technologies as part of the United States' innovative legacy. Crypto is now outlined to be America’s next great infrastructure. It elevates blockchain from a fringe experiment to a strategic domain, key to financial modernization, economic competitiveness, and national sovereignty.

1.2 Correcting Policy Course

The report bluntly critiques the regulatory overreach of the previous administration, including "Operation Choke Point 2.0," which discouraged banking relationships with lawful crypto businesses. It asserts that American innovation suffered, with talent and infrastructure migrating offshore. This document is a reset, likening Trump’s election to a blockchain hard fork that corrects prior consensus failure.

1.3 A Foundation for Global Leadership

As it’s been said by President Donald J. Trump before, the United States aims to be the crypto capital of the world. This isn’t limited to domestic policy but includes an assertive stance on international standard-setting, stablecoin diplomacy, and blockchain-driven global trade infrastructure.

II. Most Important Pages of the Report

2.1 Pages 5–12: Executive Summary and Presidential Vision

These pages establish the philosophical foundation and present the policy reset. They detail the goals of protecting the dollar, securing privacy, enabling innovation, and rejecting central bank digital currencies (CBDCs).

2.2 Pages 14–41: Digital Asset Ecosystem Overview

These sections define digital assets, explain blockchain mechanics, and describe the evolution of the ecosystem through various adoption phases. Includes infographics and data visualizations.

2.3 Pages 123–140: Taxation

Offers nuanced recommendations for crypto taxation, addressing staking, wrapping, wash sales, and the need for clearer IRS guidance.

2.4 Page 141 Onward: Table of Recommendations

A detailed and structured list of proposed reforms across agencies, industries, and legal domains. The culmination of all chapters into actionable policy.

III. SEC Reform: A Core Pillar

3.1 Ending Enforcement-First Approach

The report criticizes the SEC’s regulation-by-enforcement strategy, calling for an end to ambiguous prosecutions that create fear rather than clarity. High-profile critiques from Commissioners Peirce and Uyeda are cited to reinforce this view.

3.2 Recommendations for the SEC

• Launch of a new Crypto Task Force
• Immediate enablement of digital asset trading at the federal level
• Recognition that many software developers and protocol creators should not be classified as money transmitters
• Reaffirmation of technology-neutral principles in securities law

3.3 CFTC as the Lead Regulator for Spot Markets

The report proposes that the Commodity Futures Trading Commission (CFTC) should be granted jurisdiction over spot markets in non-security digital assets, positioning it as the regulator for Bitcoin and other decentralized assets.

IV. The Future of U.S. Crypto Leadership

4.1 Dollar-Backed Stablecoins as Strategic Instruments

Rather than pursuing surveillance-prone CBDCs, the report supports the U.S. dollar-backed stablecoins. These are seen as critical tools to protect the dollar’s dominance in global trade, facilitate faster payments, and integrate private-sector innovations into sovereign monetary strategy.

4.2 Rejecting the CBDC Model

The report unequivocally rejects the issuance of a U.S. CBDC. It argues such systems pose unacceptable risks to individual privacy, financial freedom, and constitutional governance.

4.3 International Diplomacy

The report directs U.S. agencies to lead international technical standards, legal definitions, and settlement systems. It calls for the U.S. to set the norms that other nations will follow in the global digital economy.

V. Market Overview and Key Data

5.1 Adoption

• Over 52 million Americans own crypto assets.
• 72% approval rating for Trump among crypto investors.
• 83% of institutional investors plan to increase exposure.

5.2 Institutional Investment

• Over $2.7 billion in crypto VC funding deployed in Q1 2025.
• Growth in tokenized money market funds, private credit, and ETFs.
• Bitcoin ETF balances exceed $110 billion.

5.3 DeFi and DEX Activity

• Total Value Locked (TVL) in DeFi: $130 billion.
• DEX volume has grown to 40% of CEX volume.
• Liquidity aggregators and smart contract automation proliferating.

5.4 Wallets and Custody

• Only one federally chartered digital asset bank exists (Anchorage Digital).
• Emphasis on self-custody and multi-signature/MPC models.
• Custody structures evolving for institutional risk management.

VI. Taxation and IRS Policy

6.1 Current Challenges

Crypto stakeholders face fragmented and outdated tax guidance, particularly around staking, DeFi income, wrapped assets, and reporting requirements.

6.2 Recommended Reforms

• Publish IRS guidance on staking and mining timing of income
• Define taxable status of wrapping/unwrapping tokens
• Add digital assets to wash sale rule
• Extend loan treatment to fungible crypto assets under Section 1058
• Introduce a new asset class category for digital assets

6.3 Third-Party Reporting

The report supports expanding 1099-like reporting for brokers, exchanges, and custodians, but emphasizes protecting individual privacy and not burdening developers who do not have custody or control.

VII. Other Noteworthy Elements

7.1 Crypto 101 (Pages 9–12)

An educational section explaining public-private key cryptography, wallets, nodes, mining, and consensus. Cites original posts by Satoshi Nakamoto. Explains concepts like HODL, MEV, and permissionless innovation.

7.2 Tokenization of Real-World Assets

Projects are tokenizing over $650 billion in real-world assets, including real estate, private debt, and government money market funds.

7.3 Developer Exodus and Return

The report laments the U.S. drop from 25% to 18% of global open-source crypto developers due to past policy. Reforms aim to reverse this decline.

7.4 State-Level Regulation

Describes BitLicense (NY), Wyoming SPDI charters, and California’s 2025 regime. Argues for harmonization to reduce compliance burden and encourage innovation.

7.5 Infrastructure Landscape

Covers the full tech stack from base layers and smart contracts to interfaces and node providers. Highlights tools like DEX aggregators, oracles, and cross-chain bridges.

VIII. Conclusion: Crypto as a Pillar of the American System

This report is more than policy. It is an ideology, a doctrine. It redefines crypto not as a “something to be cautious with” but as a strategic asset class. In doing so, it calls for a federal regulatory regime that supports:

• Permissionless innovation
• Institutional-grade infrastructure
• Consumer and investor protection
• Global monetary leadership

The U.S. is declaring itself a crypto capital, not only sovereignly, but also of the entire world  - open for miners, builders, investors, and citizens.

Crypto is now at the forefront of America as a nation, and it’s going to progressively mend itself into society as we know it.

Read more:

CEXs Introducing Wealth Management Features & Why Coinchange Is Especially Important Now

Three Bills of Legislative Clarity: Can the U.S. Become the Crypto Regulation Leader?

Building Trust in Crypto Yield: How Robust Security and Risk Management Protect Your Users and Business

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