The United States Releases the "Encryption Policy Report": Regulate Development, Lead Globally

Recently, the U.S. government released an important report on cryptocurrency policy, which was developed based on a new executive order signed in early 2025. The report was jointly prepared by the Department of the Treasury, the Securities and Exchange Commission, the Commodity Futures Trading Commission, the Federal Reserve System, and the White House economic team, aiming to formulate a unified cryptocurrency strategy. Here are the main contents and interpretations of the report:

1. The United States strives to become a leader in the on-chain finance sector.

The report emphasizes that the United States should maintain its global leadership in the digital finance sector, particularly in bitcoin, stablecoins, and on-chain assets. To achieve this goal, the government plans to formulate clearer regulations, encourage innovation, and attract more capital investment.

2. Stablecoin Regulatory Framework

For institutions looking to issue stablecoins pegged to the US dollar, the report outlines a series of requirements:

• Must obtain the relevant licenses
• Maintain sufficient cash reserves
• Ensure timely redemption capability
• Accept regular audits
• Implement consumer protection measures
• Prohibition of false advertising

These measures are similar to those in Hong Kong and the European Union, but they encourage private enterprises to innovate rather than introducing an official stablecoin.

3. Clarify the Responsibilities of Regulatory Authorities

To address the current chaotic regulatory situation, the report recommends that Congress legislate as soon as possible to clearly delineate the responsibilities of the Securities and Exchange Commission and the Commodity Futures Trading Commission:

• Securities are regulated by the Securities and Exchange Commission.
• Commodity assets (such as Bitcoin) are regulated by the Commodity Futures Trading Commission.
• Establish separate licensing mechanisms for stablecoins and trading platforms.

4. Denial of Central Bank Digital Currency (CBDC)

The report clearly states that the United States will not issue a central bank digital dollar, citing reasons including:

• May infringe on citizens' privacy
• Grant too much power to the government
• Does not align with the spirit of the American free market.

This position is consistent with the Republican Party's claims in recent years.

5. Encryption Asset Taxation and Pension Policy

The report mentions that the IRS will issue new guidelines clarifying the tax treatment of encryption assets, including:

• How to declare encryption asset income
• Distinguish between "income" and "capital gains"
• Allow employers to consider including mainstream encryption currencies that meet security standards in 401k retirement accounts.

6. Nationally Supported Blockchain Infrastructure Construction

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

• On-chain settlement system
• Government Compliance Tools (RegTech)
• encryption audit
• Privacy technologies such as zero-knowledge proofs

This could give rise to a new "Defense Advanced Research Projects Agency on the blockchain" or National Innovation Center.

7. Bitcoin Reserve Policy

Although the report did not explicitly propose a government plan to purchase Bitcoin, it mentioned that "a long-term stable Bitcoin policy could strengthen the diversification of national strategic assets," which has sparked speculation in the market about the U.S. government potentially considering accumulating Bitcoin.

Summary

This report conveys the attitude of the U.S. government towards encryption currency:

• Will not ban encryption currency, but is committed to regulating and institutionalizing.
• Does not issue central bank digital currency, but supports the development of private stablecoins.
• Call on Congress to pass relevant legislation as soon as possible to clarify the responsibilities of regulatory agencies.
• The United States hopes to dominate the global encryption financial sector.

This policy direction demonstrates the U.S. government's long-term planning and strategic considerations for the encryption industry, aiming to balance innovation, regulation, and national interests.