Trump administration's 166-page encryption report: Aiming at the global "crypto capital", updating Bitcoin strategic reserve plan, and promoting stablecoins.

The Trump administration has released a significant report on encryption policy, aimed at establishing the United States' global leadership in the digital asset sector. The report harshly criticizes the regulatory policies of the Biden era, calling on Congress to legislate to protect users' rights to self-custody and P2P transactions, pressuring the SEC and CFTC to open federal-level trading, and promoting the adoption of stablecoins to maintain the dominance of the dollar, while firmly opposing Central Bank Digital Currency (CBDC). The report also details the highly anticipated "Bitcoin Strategic Reserve" plan, managed by the Treasury Department, but clarifies that confiscated assets will be prioritized for statutory purposes. The policy has received support from the encryption industry and some lawmakers, but has also sparked controversies over conflicts of interest and investor protection.

1. Policy Shift: From "Unimaginable" to "American Golden Age"

Just last year, the White House released a 166-page report outlining how the United States could become the "world's crypto capital," which seemed like a fantasy. But with Donald Trump taking office—who took a firm pro-Bitcoin stance during his campaign—it has become a reality.

This in-depth document titled "Enhancing American Leadership in Digital Financial Technologies" classifies cryptocurrency as a "next-generation technology" on par with railroads and the internet. The report sharply criticizes the regulatory environment of the previous administration from the outset, condemning the Joe Biden administration for overreaching in regulation and creating a "hostile environment" for industry enterprises.

The report vows that encryption technology will become part of a "new American golden age," aimed at guiding the federal government onto a new path and reversing the trend of numerous fintech companies deciding to relocate their businesses overseas. The report unambiguously points out its political benefits: polls show that Trump currently enjoys a support rate of up to 72% among crypto investors. Considering that an estimated 72 million Americans hold digital assets, this figure is significant.

2. Core Policy: Relaxing Regulations, Embracing Innovation, and Promoting Stablecoins

Key points of the report include:

1. User Rights and Trading Freedom: Calling on Congress to "legislate to confirm that individuals can self-custody their digital assets without financial intermediaries and can use these assets for legal peer-to-peer (P2P) transactions."
2. Pressure Regulatory Agencies to Open Trading: Apply new pressure on the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to "immediately allow digital asset trading at the federal level."
3. Opposing "Operation Chokepoint 2.0": Mentioning what is widely referred to as the Biden administration's high-pressure tactic "Operation Chokepoint 2.0", calling on banks to embrace digital assets rather than "discriminating against legitimate businesses solely because of their industry."
4. Promoting stablecoins to maintain dollar hegemony: Urging government agencies to utilize the "GENIUS Act" to encourage broader adoption of stablecoins, believing it helps to "advance the dollar's dominance in the digital age." This is seen as a key signal for the United States' relaxation of cryptocurrency regulation and promotion of dollar stablecoin applications.

3. Tough stance: Firmly resist Central Bank Digital Currency (CBDC)

The report clearly warns that support for innovation should not extend to Central Bank Digital Currencies (CBDC). The report calls for Congress to legislate to prevent the Federal Reserve from launching its own digital dollar now or in the future. The following statement is quite profound:

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

In other words, the United States not only aims to prohibit CBDCs domestically but also intends to prevent other major economies from launching their own CBDCs. Countries like Australia and Canada have already shelved such plans, and the Bank of England has recently expressed doubts about the necessity of "Britcoin." However, the European Central Bank seems determined to advance the digital euro, primarily concerned that privatized, dollar-backed stablecoins may undermine the euro and affect financial stability. This highlights the intense competition of global CBDC.

4. Bitcoin Strategic Reserve: Details and Questions

The report updates a key part of Trump's agenda before the November election - the "Bitcoin Strategic Reserve" plan.

The report confirms that the reserve (including other digital asset inventories) "will be managed by the Treasury, which will establish an office to manage and control the relevant custody accounts." While the reserve will primarily come from the confiscated digital assets of criminals, the report adds:

"The confiscation of digital assets required to meet statutory objectives will continue to be used for these purposes, including compensating identifiable and verifiable crime victims, supporting law enforcement actions, fairly sharing with state and local law enforcement partners, and fulfilling other statutory forfeiture program requirements."

This means that there is no guarantee that 100% of the Bitcoin submitted by criminals will enter the reserves. The report essentially reiterates the initial statement made by Trump when he signed the executive order in March of this year, but five months later, many unresolved issues still exist. The report reiterates that the Treasury and Commerce Departments will be responsible for developing a "budget-neutral" method to acquire more BTC, but it does not specify a concrete strategy. Although the Treasury has submitted "considerations for establishing and managing the reserves," the report acknowledges that the reserve has not yet become operational. Bitcoin Strategic Reserve Management and Use of Confiscated Assets remain the focus.

V. Reactions: Praise and Sharp Criticism Coexist

• Supporters cheer:
• Wyoming Senator Cynthia Lummis (a long-time advocate for sensible encryption regulation and current chair of the Senate Banking Committee's digital asset subcommittee) praised the report: "I am ecstatic that we finally have a president who understands the transformative power of digital assets and distributed ledger technology, and can build America's financial future on it." She has called for the U.S. to accumulate an astonishing 1 million BTC within five years.
• The Crypto Council for Innovation is equally enthusiastic, calling it a "comprehensive framework touching on all aspects of bank access, stablecoins, tax treatment, illicit finance, decentralized finance (DeFi), and user self-custody rights." Its CEO Ji Kim stated, "It reflects the United States' leadership in the digital asset space and a serious commitment to the continued adoption of blockchain technology." Allegedly, senior White House officials have even referred to it as the "regulatory bible."
• The regulators responsible for implementing the recommendations have also responded positively. SEC Chairman Paul Atkins believes: "A reasonable regulatory framework for digital assets is the best way to stimulate innovation in the U.S., protect investors from fraud, and maintain our capital markets' world-leading position." He subtly criticized former Chairman Gary Gensler by stating: "The goals we outlined are ambitious and crucial for seizing this moment of opportunity... The U.S. must do more than just keep pace with the cryptocurrency revolution — we must lead it. I am ready at any time to assist in this work."
• Critics attack:
• Democrats have long accused Trump of fully supporting digital assets as a blatant conflict of interest, especially considering that his family has made a fortune by launching encryption projects. Ethical watchdogs have also sounded the alarm, claiming that this roadmap not only fails to protect ordinary investors but also exposes them to greater risks.
  • Accountable. US Executive Director Tony Carrk sharply criticized: "Let's be clear: Trump has spent far more time abusing presidential power and engaging in shady encryption cryptocurrency transactions to enrich himself and his family than helping American workers. Today's self-serving report is nothing more than an industry wish list disguised as government policy." This directly points to the controversy of Trump's cryptocurrency conflict of interest.

6. Background and Challenges of the Report Release

In fact, this in-depth encryption report may not receive the widespread attention that the White House hopes for. Higher tariffs on key U.S. trade partners such as Canada, Australia, and India may take effect on August 1, as a new agreement has not yet been reached. The uproar surrounding Jeffrey Epstein continues to fester, raising new questions about the president's connections to the disgraced financier.

Conclusion: The first comprehensive encryption policy report of the Trump administration aims to establish the "global encryption capital" and sends a strong signal in areas such as regulatory easing, supporting private innovation (especially stablecoins), building Bitcoin reserves, and strongly resisting CBDCs. Despite gaining support from the encryption industry, the potential conflicts of interest behind it and the effectiveness of protecting ordinary investors will still spark intense debate. The deep game of U.S. encryption policy is entering a critical stage alongside the presidential election.