In a major step toward shaping the future of cryptocurrency in the United States, the White House has released a comprehensive 168-page policy document outlining a proposed regulatory framework for digital assets.
The report, developed by the President’s Working Group on Digital Asset Markets, comes in response to a recent executive order from President Donald Trump, signaling a renewed national focus on blockchain-based technologies.
The initiative aims to establish clear rules around crypto asset custody, taxation, stablecoin issuance, and decentralized finance (DeFi), while promoting U.S. leadership in the evolving global digital economy.
Top Officials Join Forces to Define Digital Asset Policy
Leading the policy effort are Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and SEC Chair Paul Atkins. The group’s recommendations focus on balancing innovation with oversight, encouraging the development of U.S.-based crypto infrastructure while safeguarding investor interests.
According to the report, blockchain has the potential to modernize economic systems at scale. However, the group emphasized that clear legal boundaries must be in place to protect both users and entrepreneurs.
A recurring theme in the document is the importance of self-custody, a principle that affirms individuals’ rights to hold and manage their own digital assets without intermediaries.
Strategic Bitcoin Reserve Proposed Without Taxpayer Funding
One of the standout features of the policy document is a plan to create a U.S. Strategic Bitcoin Reserve, alongside a broader digital asset stockpile. Unlike traditional reserve models, this initiative would be funded exclusively through asset forfeitures, meaning no taxpayer dollars would be used in the acquisition of digital assets.
The reserve, overseen by the Treasury Department, would include bitcoin as well as other high-cap crypto tokens like XRP, Ethereum, Solana, and Cardano.
These assets would be held indefinitely as part of a sovereign digital reserve strategy and deployed only in accordance with established legal frameworks.
Though a precise rollout timeline was not provided, officials confirmed that the Treasury is actively working on implementation plans, and more details are expected in the coming months.
Clearer Rules for Stablecoins and Crypto Taxes
The report also follows the recent passage of the GENIUS Act, signed into law by President Trump. The legislation creates a formal legal framework for stablecoins, requiring issuers to maintain one-to-one reserves in either U.S. dollars or similarly liquid assets. It also introduces audit requirements and reserve transparency mandates for all stablecoin operators.
The Working Group encouraged Congress to extend these standards through broader crypto legislation. Negotiations are already underway in both the House and the Senate on bills that would bring additional clarity to digital asset markets.
On taxation, the report recommends clearer IRS guidelines regarding gains and losses from crypto investments. It also proposes rules for wrapped and unwrapped tokens—an area that has historically lacked regulatory clarity.
For small transactions, the group floated the idea of a de minimis exemption, allowing crypto users to make low-value purchases without triggering taxable events.
DeFi Under the Microscope
The policy framework dedicates a section to decentralized finance, calling on lawmakers to evaluate DeFi projects based on their governance models rather than treating all protocols the same. This suggests a shift toward more nuanced regulation of DeFi systems, where compliance might vary based on decentralization levels and token holder influence.
The SEC has also been encouraged to adopt safe harbor provisions for early-stage crypto projects, allowing room for innovation without immediate enforcement actions. This echoes past proposals by former SEC Commissioner Hester Peirce, who advocated for innovation-friendly policies within the crypto space.
A Roadmap for U.S. Crypto Leadership
The White House’s release of the policy blueprint signals a maturing stance on crypto regulation. By offering detailed guidance on everything from stablecoins and taxation to asset custody and national reserves, the report attempts to balance U.S. competitiveness with security and financial transparency.
If Congress adopts the recommendations in full or in part, the United States could move closer to creating one of the most comprehensive regulatory environments for digital assets globally.
As for the Strategic Bitcoin Reserve, Treasury officials are expected to provide additional updates later this year. If successful, it could serve as a model for how governments engage with decentralized financial infrastructure in a cost-effective and forward-looking manner.
