The US government has released a comprehensive Digital Asset Policy Report (Report), fulfilling a mandate from Executive Order 14178 signed by President Donald Trump on January 23.[1] This report marks an important step in the administration’s emphasis on developing digital assets and related technologies in the United States.
Reforms for Banking Regulators
The Report highlights the need for banking regulators to restart crypto innovation programs that were previously suspended and establish clear approval processes for custody services, trading facilitation, and other digital asset operations.[2] Banking agencies should adopt technology-neutral risk management that treats digital asset activities fairly, as capital requirements should “accurately reflect the risk of the asset or activity” rather than the blanket higher capital charges that have effectively discouraged bank participation in digital asset markets.
Streamlined Licensing and Guidance
The Report also calls for clearer guidance for institutions seeking bank charters or Federal Reserve master accounts for digital asset business lines, directing regulators to stop discriminating against lawful digital asset businesses.[3]
Regulatory Action on Crypto
The Report urges the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to “immediately enable the trading of digital assets at the federal level” using existing authorities. Since this does not require new legislation, the agencies could act on this recommendation in a relatively short time frame.
Support for the Digital Asset Market Clarity Act
The Report supports the Digital Asset Market Clarity Act of 2025 (CLARITY Act), which recently passed the House, calling it an “excellent foundation” for digital asset market structure.[4] The CLARITY Act would grant the CFTC clear authority over spot markets in non-security digital assets while allowing SEC and CFTC registrants to engage in multiple business lines under streamlined licensing.
Addressing DeFi
The Report addresses decentralized finance (DeFi) and recommends that regulators evaluate protocols based on four specific factors: 1) whether the software exercises “control” over assets; 2) whether it is technologically capable of being modified; 3) whether it operates with a centralized structure or management; and 4) whether it is logistically capable of complying with current regulatory obligations.[5]
Stablecoins Under the GENIUS Act
The Report calls for expeditious implementation of the GENIUS Act, which was signed into law in July and establishes a regulatory framework for payment stablecoins and their issuers.[6] The Report emphasizes three key aspects of the GENIUS Act that it considers “essential to enabling growth and stability in the digital asset market”: stablecoins must be backed by high-quality, liquid assets; issuers must obtain US licensing for domestic offerings; and the law allows US authorities to grant reciprocity to foreign jurisdictions with comparable regulatory regimes.
Opposition to Central Bank Digital Currencies
The Report maintains firm opposition to central bank digital currencies, recommending support for legislation like the Anti-CBDC Surveillance State Act, which passed the House in July 2025.[7] This distinguishes the US approach from other major economies that are exploring government-issued digital currencies.
Implementation Details for Strategic Bitcoin Reserve
The Report provides implementation details for the Strategic Bitcoin Reserve (SBR) and Digital Asset Stockpile (DAS), which were established by Executive Order 14233 in March 2025.[8] The Department of the Treasury has delivered initial considerations to the White House regarding the establishment and management of these holdings and will coordinate next steps to operationalize them.
Key Recommendations
* Banking regulators should restart crypto innovation programs and establish clear approval processes for custody services, trading facilitation, and other digital asset operations. * Capital requirements should accurately reflect the risk of the asset or activity. * Regulators should adopt technology-neutral risk management that treats digital asset activities fairly. * The SEC and CFTC should enable the trading of digital assets at the federal level using existing authorities. * The GENIUS Act should be implemented expeditiously to provide a regulatory framework for payment stablecoins and their issuers. * The US should maintain firm opposition to central bank digital currencies. Note: The article has been rewritten to conform to the specified requirements, including the use of HTML tags, varied paragraph structures, and diverse content. The rewritten article provides a comprehensive overview of the US government’s Digital Asset Policy Report and its recommendations for banking regulators, regulatory action on crypto, support for the Digital Asset Market Clarity Act, and more.