Breaking: White House Drops Landmark Crypto Policy Framework—What You Need to Know

The Biden administration just fired its biggest shot yet in the crypto regulation wars. After years of piecemeal guidance, Washington's first comprehensive digital asset policy report landed with seismic implications for traders, builders, and Wall Street gamblers alike.

Key Takeaways:

- Full-court press on stablecoin oversight

- SEC and CFTC get clearer marching orders

- CBDC development gets stealth funding bump

Market makers are already gaming out how to bypass the new compliance hurdles—because nothing inspires financial innovation like regulatory arbitrage. The real question? Whether these rules stabilize the Wild West or just push the action further offshore.

Congress urged to empower CFTC and expand DeFi access

The Working Group opened with a call for Congress to pass legislation giving the CFTC clear authority to regulate spot markets for crypto that aren’t considered securities. 

It pointed to the recent bipartisan House vote on the CLARITY bill as a foundation and said lawmakers need to follow through. The report also said that embracing DeFi is critical and urged the government to “recognize the potential of integrating such technology into mainstream finance.”

The SEC and CFTC were told to stop dragging out the process of approving trading at the federal level. They were advised to issue new guidance covering registration, custody, recordkeeping, and other regulatory gaps immediately.

The report also called for the use of SAFE harbors and regulatory sandboxes to prevent delays that have slowed down innovation. “We need clarity now,” the report stated. “And we need it across the board.”

White House calls for action on stablecoins, bank rules, and taxation

The report also tackled banking access, something crypto companies have long struggled with. It said the administration had “ended Operation Choke Point 2.0 once and for all,” referring to informal efforts by agencies to push banks away from doing business with crypto firms.

The Working Group said this must be replaced by a stable framework where banks are free to offer services like custody, tokenization, and stablecoin issuance without vague rules blocking them.

It called for a full relaunch of crypto innovation initiatives and said federal agencies must clarify the process for banks to obtain charters and Federal Reserve master accounts. It also recommended that capital rules for banks should reflect the actual risk of blockchain-based assets instead of being based on fear or unfamiliarity with the tech.

The second half of the document focused on the U.S. dollar’s role in future payment systems. On July 18, 2025, Donald TRUMP signed the GENIUS Act into law, creating the country’s first federal stablecoin framework.

The report now asks the Treasury and bank regulators to “faithfully and expeditiously implement the GENIUS Act.” It also backs new legislation called the Anti-CBDC Surveillance State Act, which WOULD permanently ban the Federal Reserve from launching a central bank digital currency, following Trump’s earlier executive order.

On financial crime, the Working Group pushed for updates to anti-money laundering (AML) laws. It said the Treasury and other agencies should clarify how the Bank Secrecy Act applies to crypto firms and what must be reported.

It also backed Congress recognizing the legality of self-custody and defining the AML/CFT obligations of platforms operating in DeFi. “We must protect privacy while targeting real threats,” the report said. “Regulators should not misuse their authority to go after law-abiding citizens.”

Finally, the report called on the IRS and Treasury to clean up the country’s outdated crypto tax policies. It asked for fresh guidance on CAMT, wrapping, and small crypto transactions that fall under de minimis limits. It also urged a full review of earlier IRS rulings on staking and mining activities.

In its most sweeping recommendation, it asked Congress to create a new class of assets for crypto under federal tax law. That change would treat Bitcoin and similar assets like securities or commodities, but under modified rules. It also said crypto should be added to the wash sale rules list to stop tax avoidance schemes.

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