Trump Administration’s Digital Asset Report: US Crypto Regulation, Stablecoins, and CBDC Ban

The Trump administration has released a comprehensive report on digital assets, outlining a strategic vision for the burgeoning cryptocurrency sector within the United States. This seminal document, crafted by the President’s working group on digital assets, emphasizes the pivotal role cryptocurrencies are anticipated to play in fostering American innovation and economic growth, while simultaneously proposing a robust framework for their regulation and integration into the broader financial system.

• The Trump administration’s report on digital assets was compiled by the President’s working group.
• It proposes a joint oversight model for digital assets involving the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
• The report recommends granting the CFTC primary jurisdiction over crypto spot markets.
• It advocates for deeper integration of digital assets into traditional finance, allowing banks to hold crypto and offer related services.
• The administration supports dollar-pegged stablecoins but recommends prohibiting a U.S. central bank digital currency (CBDC).
• Congress is advised to establish a distinct tax regime for the cryptocurrency sector.

Regulatory Framework and Jurisdictional Clarity

The report delineates a future regulatory landscape designed to emphasize clarity and establish well-defined jurisdictional boundaries. It proposes a joint oversight model, under which the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) would share supervisory responsibilities. Crucially, the document recommends that the CFTC be granted primary jurisdiction over spot markets for digital assets, an initiative aimed at streamlining oversight and significantly reducing the regulatory ambiguity that has long characterized this evolving sector.

Integration with Traditional Finance

A cornerstone of the administration’s recommendations is the deeper integration of digital assets into traditional financial infrastructure. The working group suggests simplifying the process for financial institutions to acquire banking licenses and explicitly permitting banks to hold crypto assets on their balance sheets, in addition to offering a range of related services to clients. This proposal emerges amidst an active pursuit by several digital asset firms for trust bank licenses—a strategic move that has historically encountered robust opposition from established banking lobbies, particularly in their engagements with the Office of the Comptroller of the Currency (OCC).

Protecting Rights and Shaping Digital Currency Policy

Further policy principles outlined in the report include the protection of fundamental rights for individuals and entities to utilize public blockchains, engage in development, participate in mining and validation processes, conduct peer-to-peer transactions, and maintain self-custody of crypto assets. The report also champions the support for dollar-pegged stablecoins, viewing them as a crucial mechanism to safeguard the sovereignty of the American currency in the digital age. In a notable stance, the administration recommends implementing measures to shield Americans from risks associated with a central bank digital currency (CBDC), explicitly advocating for a prohibition on its issuance, circulation, and use.

Taxation and Legislative Momentum

Regarding taxation, the working group has advised Congress to formulate a distinct tax regime specifically for the cryptocurrency sector. While recognizing digital assets as an emerging asset class, the report acknowledges that their classification can still subject them to existing securities and commodities regulations, depending on their specific characteristics. This recommendation is intended to provide much-needed clarity and a tailored approach to the taxation of digital assets.

This comprehensive report arrives within a legislative environment already demonstrating heightened attention to digital assets. The U.S. House of Representatives has recently approved several industry-related bills, notably with President Trump having signed one into law specifically addressing the issuance and circulation of stablecoins. These collective actions underscore a concerted effort from the current administration and Congress to establish a definitive and supportive regulatory environment for the evolving digital asset economy.