July 30, 2025
5 min read
Vince Quill
The Trump administration's crypto working group releases a comprehensive report recommending clear regulations on crypto oversight, banking, and taxation.
The Trump administration's Working Group on Digital Assets has released its long-awaited report outlining policy recommendations for regulating cryptocurrencies in the United States. The report covers key areas including crypto market structure, jurisdictional oversight, banking regulations, stablecoins, and taxation.
Source: Trump Admin Releases Promised Crypto Report
Defining a clear taxonomy for digital assets
A primary focus of the report is establishing a clear "taxonomy" of digital assets by distinguishing which cryptocurrencies qualify as securities and which are commodities. This classification is intended to clarify jurisdictional oversight and streamline regulatory efforts. The report recommends shared oversight between the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC). Specifically, the CFTC would oversee spot crypto markets and commodity tokens, while the SEC would regulate tokens classified as securities. The authors emphasize that a well-defined market structure would position the United States as a global leader in digital asset innovation. SEC Chair Paul Atkins commented that "a rational regulatory framework for digital assets is the best way to catalyze American innovation, protect investors from fraud, and keep our capital markets the envy of the world."Easing and clarifying banking regulations
The report advocates for easing banking regulations to allow banks to custody cryptocurrencies and offer digital asset services to customers. It calls for banking regulators to streamline the process of acquiring bank charters and make requirements more transparent. Stablecoins and payment systems are also addressed, with the report emphasizing the importance of embracing stablecoins to maintain the US dollar’s global dominance. The authors urge Congress to pass the CBDC Anti-Surveillance State Act, which would prohibit the research and development of a central bank digital currency (CBDC) in the US. However, the report notes that many stablecoin features closely resemble those of CBDCs, highlighting that stablecoin issuers can cooperate with law enforcement to freeze and seize assets to combat illicit activities.Establishing clear cryptocurrency taxation rules
The report recommends that Congress enact tailored tax legislation for cryptocurrencies that reflects their unique characteristics, such as staking. It suggests treating digital assets as a new asset class subject to modified tax rules applicable to securities or commodities for federal income tax purposes.Source: Trump Admin Releases Promised Crypto Report