White House Crypto Report: Key Takeaways and Industry Reaction

Just last year, the idea of the White House issuing a 166-page report outlining how the U.S. can become “crypto capital of the world” would have been unthinkable.

But with Donald Trump now in the Oval Office — after adopting a staunch pro-Bitcoin stance during the campaign — this has become a reality.

The in-depth document, entitled Strengthening American Leadership in Digital Financial Technology, categorizes crypto as “next-generation technology” alongside railroads and the internet.

“American entrepreneurs who pioneer new industries using these technologies deserve both clarity on the policies that affect their efforts and praise for the progress they have made.”

It begins with a swift rebuke to the regulatory landscape under Donald Trump’s predecessor — condemning Joe Biden’s administration for engaging in regulatory overreach and creating a “hostile environment” for businesses in this space.

Vowing that crypto can form part of “the new American Golden Age,” the report aims to put the federal government on a new path — and reverse the damage caused by countless fintech firms deciding to move their operations offshore.

“President Trump’s election marked an end to this misstep. It was America’s hard fork — the end of one chain of poor policy decisions in favor of an updated, better approach.”

And the authors are pretty upfront that there’s a political upside to all of this. It points to polling that suggests Trump currently has a 72% approval rating among crypto investors — a significant figure considering that an estimated 68 million Americans currently hold digital assets.

So: what are the key takeaways from this report?

One notable line includes a call for Congress to “enact legislation affirming that individuals can custody their own digital assets without a financial intermediary, and engage in lawful peer-to-peer transactions using those assets.”

There’s also newfound pressure on the Securities and Exchange Commission and the Commodity Futures Trading Commission “to immediately enable the trading of digital assets at the federal level.”

Referring to “Operation Chokepoint 2.0” — the name widely ascribed to the Biden administration’s heavy-handed approach — the document calls on banks to embrace digital assets, rather than “discriminate against lawful businesses solely due to their industry.”

Government agencies are also being urged to capitalize on the GENIUS Act by encouraging wider adoption of stablecoins — arguing they can help “advance U.S. dollar dominance in the digital age.”

However, there is also a warning that this should not extend to the rollout of a central bank digital currency, with Congress told to enact legislation that prevents the Fed from establishing its own digital dollar now or in the future. That’s followed by a pretty telling line, which reads:

“Internationally, the United States should urge other countries to adopt policies that promote the role of the private sector in upgrading payments and financial systems.”

In other words, it appears that the U.S. doesn’t just want to ban any prospect of a CBDC in its country — but stop other major economies from launching their own. The likes of Australia and Canada have already put such plans on ice, with the Bank of England recently suggesting that it isn’t convinced about the need for “Britcoin.” But the European Central Bank seems determined to push ahead with a digital euro — primarily because it’s fearful about how privatized, USD-backed stablecoins could undermine its currency and affect financial stability.

Elsewhere, there’s also an update on the Bitcoin strategic reserve — a key plank of Trump’s agenda in the run-up to November’s election.

The report confirms this reserve, along with a stockpile of other digital assets, “will be administered by the Treasury, which will establish an office to administer and maintain control of the associated custodial accounts.” While this will primarily consist of digital assets seized from criminals, the document adds:

“Forfeited digital assets needed to satisfy statutory objectives will continue to be used for those objectives, including to compensate identifiable and verifiable victims of crimes, to support law enforcement operations, to be equitably shared with state and local law enforcement partners, and to fulfill other statutory forfeiture program requirements.”

In other words, there are no guarantees that 100% of the Bitcoin forfeited by criminals will end up making its way into the reserve.

This section of the report primarily repeated what was initially announced when Trump signed an executive order back in March — but five months on, it’s clear that there are still plenty of unanswered questions.

It reiterates that the Treasury and Commerce departments are going to be tasked with developing “budget-neutral ways” of acquiring more BTC, but still doesn’t shed light on what these strategies could be. And while the Treasury has “delivered considerations regarding the establishment and management” of the reserve, the document admits that the reserve is yet to be operational.

Reaction to the Report

Wyoming Senator Cynthia Lummis — who has long been ahead of the curve when it comes to pushing for literate crypto regulation — was full of praise for the report. She currently chairs the Senate Banking Subcommittee on Digital Assets, and has previously called for the U.S. to amass a staggering one million BTC over a five-year period. In a statement, she added:

“I’m overjoyed we finally have a president who understands the transformative power of digital assets and distributed ledger technology to build America’s financial future.”

The Crypto Council for Innovation was equally enthused — describing it as a comprehensive framework “touching on everything from banking access and stablecoins to tax treatment, illicit finance, decentralized finance, and self-custody rights for users.” It also noted that some senior officials within Trump’s White House have even described it as a “regulatory Bible.” Its CEO, Ji Kim, went on to say:

“It reflects a serious commitment of U.S. leadership in the digital asset space and the continued adoption of blockchain technology.”

There were also upbeat remarks from the regulators who will be tasked with putting the White House’s recommendations into action. SEC chairman Paul Atkins argues that 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.”

Taking a swipe at his predecessor Gary Gensler, Atkins went on to say:

“The goals that we have outlined are ambitious, and essential, to meeting the possibilities of this moment … America must do more than keep pace with the crypto asset revolution — we must lead it. I stand ready to help get the job done.”

Of course, reaction to this report has not been universally positive — far from it. Democratic politicians have long argued that Trump’s full-throated support of digital assets is a brazen conflict of interest, especially considering that his family have made billions upon billions of dollars by launching crypto projects. Ethics watchdogs are also sounding the alarm — and claim this roadmap won’t protect everyday investors, but put them at risk of further harm. Accountable.US executive director Tony Carrk argued:

“Let’s be clear: Trump has spent more time abusing the power of the presidency to enrich himself and his family through shady cryptocurrency ventures than helping American workers. Today’s self-aggrandizing report is little more than an industry wishlist masked as government policy.”

Indeed, it’s possible this in-depth crypto report might not get the widespread coverage that the White House is hoping for. Higher tariffs could come into force on August 1 with some of America’s biggest trading partners — including Canada, Australia and India — because new agreements are yet to be reached. The furore surrounding Jeffrey Epstein also refuses to die down, with fresh questions being raised about the president’s ties to the disgraced financier.

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The release of the White House’s crypto report coincided with the Federal Reserve once again deciding to hold interest rates at their current level. This was widely expected in the markets, but nonetheless, marks an act of defiance from Chairman Jerome Powell — with Trump repeatedly urging him to enforce drastic cuts.

At the time of writing, Bitcoin was relatively flat and trading at about $118,500 — with Ether clocking modest gains and valued at $3,860.

It seems surreal that the markets haven’t reacted more positively to the White House releasing a bullish report on crypto regulation. But it’s the latest sign that many industry watchers are perhaps disappointed at Trump’s lack of progress in making his campaign pledges a reality. The latest odds from Polymarket suggest that there’s just a 26% chance of the U.S. establishing a strategic Bitcoin reserve in 2025, indicating there isn’t much confidence in the president coming good on his promises anytime soon.

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