Trump Government Unveils Detailed Cryptocurrency Policy Strategy
The Trump administration has revealed a comprehensive policy framework aimed at positioning the United States as the 'crypto capital of the world.' The plan, outlined in the report from President Trump's Working Group on Digital Asset Markets, addresses key aspects of market structure, banking regulations, and tax policy in relation to digital assets.
The policy blueprint builds on Trump's signing of the Genius Act on July 18, 2020, which established the first federal regulatory framework for stablecoins. The working group, established through Executive Order 14178 shortly after Trump took office in January, is urging Congress to grant the Commodity Futures Trading Commission (CFTC) authority over spot markets for non-security digital assets.
The Securities and Exchange Commission (SEC) and CFTC are encouraged to use their existing authorities to enable the trading of digital assets at the federal level. The working group is also pushing for significant changes to digital asset taxation, recommending that the Treasury and Internal Revenue Service (IRS) treat cryptocurrencies as a new asset class subject to modified versions of existing securities or commodities tax rules.
For anti-money laundering compliance, the report calls for clarity on Bank Secrecy Act obligations while protecting self-custody rights and preventing authorities from targeting lawful activities of law-abiding citizens. The working group is urging banking regulators to clarify permissible activities in cryptocurrency custody, tokenization, and stablecoin issuance.
The report advocates for regulatory sandboxes and safe harbors to allow innovative financial products to reach consumers without bureaucratic delays. This could potentially include the tokenization of traditional financial assets like stocks and real estate. The working group also recommends Congress pass the Anti-CBDC Surveillance State Act to codify Trump's executive order banning Central Bank Digital Currencies in the United States.
The working group, led by Trump official Bo Hines and including Treasury Secretary Scott Bessent and SEC Chair Paul Atkins, has been established to fulfill a campaign promise to crypto supporters who backed Trump's presidential bid with significant financial contributions. The administration claims to have ended 'Operation Choke Point 2.0,' a regulatory effort that allegedly denied banking services to the digital assets industry.
The unveiling of this detailed cryptocurrency policy blueprint represents a stark departure from the Biden administration's approach, which focused on enforcement actions against major exchanges like Coinbase and Binance. However, Trump's SEC has since dropped those cases. The working group's report does not provide information about its members beyond the named officials. The administration is seeking guidance on complex issues like mining, staking, and de minimis receipts of digital assets.
