Five major U.S. departments jointly launched: Plain language interpretation of the "White House Encryption Policy Report"

The White House just released its "Crypto Policy Report." Today, let's take a look: The Big Picture The Trump administration signed a new directive (EO 14178) in early 2025, calling for a reorganization of crypto policy and a unified strategy. This report is the product of this directive, jointly produced by the Treasury Department, the SEC, the CFTC, the Federal Reserve, and the White House economic team. Key Points of the Report (Plain Language) 1. The United States Wants to Be the Leader in "On-chain Finance" The United States does not want to fall behind and must remain a global leader in digital finance (particularly Bitcoin, stablecoins, and on-chain assets). What should be done? Regulations must be made clearer, innovation more free, and capital more willing to invest.

2. Stablecoins: Permitted, but Regulated

If you want to issue a stablecoin pegged to the US dollar, such as USDC or future commercial bank stablecoins, you must:

• Obtain a license;
• Have sufficient cash reserves;
• Be able to make timely payments;
• Submit to audits;
• Protect consumers;
• Avoid "hype."

This approach is somewhat similar to the Hong Kong and EU approaches, but it encourages private sector innovation (the government will not launch an official stablecoin).

3. SEC and CFTC: Stop fighting and clarify your responsibilities

Right now, everyone is confused about which coins are regulated by the SEC and which by the CFTC.

The report recommends that Congress quickly legislate to clarify the boundaries:

• Securities (like stocks) should be under the SEC;
• Commodities (like Bitcoin) should be under the CFTC;
• A separate licensing system should be established for stablecoins, trading platforms, etc.

4. A clear "no": The United States will not pursue a CBDC

The White House has made it clear: We will not issue a central bank digital dollar (CBDC).

Why? Because:

• It would infringe on privacy;
• It would give the government too much power;
• It would be inconsistent with the "American free market spirit."

This has been a core Republican stance in recent years.

5. Crypto taxes and pensions must also be on-chain

The report also mentions:

• The Internal Revenue Service (IRS) will issue new guidance to clarify:
• How you file your taxes;
• How you calculate money earned on-chain;
• What constitutes "income" or "capital gains";
• Employers can consider allowing crypto assets to appear in retirement accounts (401(k)s), but they must be mainstream currencies that meet security standards.

6. Building blockchain infrastructure: Don't rely solely on VCs; national investment is needed

The report recommends using national funds to support the following areas:

• On-chain settlement systems;
• Government compliance tools (regtech);
• Crypto audits;
• Privacy technologies such as zero-knowledge proofs.

There may be a new "on-chain DARPA" or National Innovation Center.

7. Is the US stockpiling Bitcoin? Not explicitly stated, but hinted at.

The report doesn't explicitly state "the US government intends to purchase Bitcoin."

But it mentions "a long-term, stable Bitcoin policy can enhance the diversification of national strategic assets," prompting market speculation: Does the government also want to stockpile some?

To summarize: This report tells us

• The US will not ban cryptocurrencies, but will regulate and institutionalize them;
• The government will not pursue a CBDC, but will encourage private stablecoins;
• Congress must pass supporting regulations as soon as possible, otherwise the SEC and CFTC will continue to compete;
• The US hopes to dominate global "crypto-finance."