The U.S. government released a digital asset policy report, providing guidance for the encryption industry regulation.

The Trump administration recently released a 166-page digital asset policy report, providing a comprehensive roadmap for the regulation of the encryption currency industry. This long-awaited report covers multiple encryption-related areas and proposes a series of policy recommendations.

The report mainly focuses on five key areas:

1. Consolidate the United States’ leadership position in the digital asset market

The report suggests that Congress pass relevant legislation to authorize the Commodity Futures Trading Commission ( CFTC ) to regulate the spot market for non-securities digital assets and to recognize the potential of decentralized finance ( DeFi ) technology. At the same time, the Securities and Exchange Commission ( SEC ) and CFTC should utilize their existing powers to initiate digital asset trading at the federal level and provide clear guidance for market participants.

2. Update digital asset bank regulation

The government has terminated regulatory measures that restricted banking services to the digital asset industry. The report suggests restarting innovation in encryption, clarifying the activities that banks can engage in regarding custody, tokenization, and improving the transparency of related processes.

3. Strengthen the status of the US dollar

The report calls for faithful implementation of the “GENIUS Act” and suggests that Congress pass legislation to incorporate the executive order provisions prohibiting U.S. Central Bank Digital Currency into law, in order to protect privacy and civil liberties.

4. Combatting illegal financial activities in the digital age

It is recommended that relevant departments clarify the obligations and reporting requirements of the “Banking Secrecy Act,” emphasize the importance of self-custody, and specify the anti-money laundering obligations of participants in the DeFi ecosystem. At the same time, regulatory agencies should prevent abuse of power and protect citizens’ privacy.

5. Ensure the fairness and predictability of digital asset taxation

It is recommended that the Ministry of Finance and the State Taxation Administration issue relevant guidelines to reduce the burden on taxpayers and review the previously published guidelines on the tax treatment of activities such as mining and staking. It is also suggested that Congress recognize digital assets as a new asset class and amend the relevant tax rules.

The industry generally views this report as a positive signal of the Trump administration’s encryption policy direction. Ji Kim, CEO of the Crypto Innovation Committee, stated that the report signifies a unified effort by the government to ensure that the United States maintains its leading position in the era of digital assets.

However, although the report is seen as a “major victory” for the industry, it does not reveal any new specific measures or provide a detailed explanation of the policy. Some key issues remain unresolved, such as the future scale of federal government cryptocurrency reserves. Moreover, as Congress has yet to pass the market structure bill, many market participants will still face uncertainty.

Although this report may not fully meet expectations, it lays the foundation for the regulatory framework of the US encryption industry. With further implementation and improvement of policies, the industry looks forward to seeing clearer and more comprehensive regulatory guidance.