White House Crypto Report Reveals Crackdown and Hidden Reserves

In a landmark move, the Trump administration has released a comprehensive 168-page White House crypto report, outlining bold regulatory shifts, a proposed digital asset reserve, and a friendlier tone toward the cryptocurrency industry. 

This policy pivot, which contrasts sharply with the previous administration's aggressive stance, signals a transformative moment for the U.S. crypto landscape. 

The report—developed by the President's Working Group on Digital Asset Markets—touches on everything from stablecoin regulation to tokenization, DeFi innovation, and a crypto stockpile strategy that is already underway.

A New Era of Crypto Regulation

At the heart of this crypto regulation news is the White House’s call for a modernized legal framework tailored specifically to digital assets. 

The report urges Congress to pass legislation like the Clarity Act, which would define how digital assets are classified (security, commodity, or stablecoin), and to give the Commodity Futures Trading Commission (CFTC) jurisdiction over crypto spot markets.

Unlike Biden's SEC, which pursued aggressive enforcement actions against crypto exchanges like Coinbase and Binance, the Trump-era SEC is now encouraged to create “safe harbors” and regulatory sandboxes.

This would allow innovative digital products to reach the public faster, with fewer bureaucratic hurdles—one of the key principles of the new Biden crypto policy reversal.

Read Also: SEC Is Embracing Crypto! Considers Tokenized Securities Sandbox for Safer Crypto Trading

SEC Crypto Regulation: A Shift in Tone

The SEC crypto regulation component of the report suggests a departure from previous zero-tolerance policies. Instead, the new leadership is pushing for more nuanced approaches. 

These include:

• Tailored disclosure requirements for crypto issuers
• Flexibility for trading platforms to offer custody services
• Exemptions for software-based decentralized finance (DeFi) protocols
• “Fit-for-purpose” registration rules for token offerings

This softer stance is designed to nurture rather than stifle growth within the sector.

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Establishing a U.S. Crypto Stockpile

One of the more headline-grabbing revelations from the report is the proposal to create a strategic crypto stockpile. 

The plan outlines how the Treasury Department would build and maintain a reserve of cryptocurrencies—sourced not from taxpayer funds, but from forfeited digital assets acquired through enforcement.

This digital asset reserve would include major assets such as Bitcoin (BTC), Ethereum (ETH), XRP, Solana (SOL), and Cardano (ADA). 

Importantly, the report emphasizes that the crypto in this reserve is intended for long-term national strategy use, not liquidation.

Read Also: White House to Release Comprehensive Crypto Policy Report on July 22

Supporting Tokenization and DeFi Innovation

The report also highlights the importance of tokenization—the process of turning traditional financial instruments into blockchain-based assets. 

The working group suggests that tokenization can democratize access to investment tools such as:

• Real estate
• Bond funds
• Stocks
• Bank deposits

They also reaffirm the role of decentralized finance (DeFi) and urge regulators to consider the unique nature of software protocols when developing rules. 

This open stance could lead to a boom in DeFi activity within U.S. borders, a stark contrast to the previous climate of fear and enforcement.

The Role of Taxation in Crypto Policy

Tax regulation was not ignored. The White House has called for the IRS and Treasury to publish updated guidance that reflects crypto’s unique nature, including:

• Treatment of unrealized gains/losses on non-stock crypto assets
• Tax implications of “wrapping and unwrapping” assets
• De minimis rules for microtransactions

These reforms aim to simplify compliance and lower barriers for new users and developers.

Read Also: First Crypto Policy Report Drops Today — What You Must Know

Transparency vs. Conflict of Interest

Despite its forward-looking tone, the report has raised questions about potential conflicts of interest. 

Trump has publicly embraced the crypto industry, accepted campaign donations in digital assets, and his family has launched meme coins. 

Additionally, he holds a stake in a crypto platform. The White House has denied any wrongdoing, asserting the integrity of its policymaking process.

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FAQ

What is the White House crypto report?

The White House crypto report is a 168-page document released in July 2025 by the Trump administration’s crypto task force. It outlines proposed legislation, regulations, and strategies to grow and secure the U.S. digital asset ecosystem.

What does the SEC crypto regulation update mean?

The report encourages the SEC to adopt more flexible rules for crypto innovation, including safe harbors and tailored exemptions. This represents a significant shift from the previous administration’s strict enforcement approach.

What is the purpose of the U.S. crypto stockpile?

The crypto stockpile is a proposed national reserve of major digital assets, to be managed by the Treasury and used for strategic governmental purposes. It will be funded through forfeited assets, not taxpayer money.

Is the Biden crypto policy still in effect?

No. The Trump administration has reversed much of the Biden crypto policy, opting instead for a more open, innovation-focused approach.

How does this affect crypto legislation going forward?

With bipartisan support for the Clarity Act and new guidance from the White House, the next few months may see the most significant crypto legislation in U.S. history come into effect.