Seeds of Wisdom RV and Economic Updates Thursday Afternoon 7-31-25
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Trump White House Releases Long-Promised Crypto Framework — Stablecoins, Tax Clarity, and U.S. Dollar Hegemony Take Center Stage
The Trump administration has released its long-anticipated crypto policy report, outlining a sweeping regulatory blueprint that seeks to clarify digital asset oversight, promote stablecoins, and assert U.S. leadership in the evolving global financial system. The report marks a decisive step toward formalizing the United States’ stance on crypto market structure, stablecoin integration, tax treatment, and banking reforms.
A Formal Taxonomy of Digital Assets
The centerpiece of the report is a call to define a “taxonomy” of digital assets — clearly distinguishing which cryptocurrencies should be classified as commodities and which fall under the category of securities. The Commodity Futures Trading Commission (CFTC) would oversee spot markets for commodity tokens, while the Securities and Exchange Commission (SEC) would regulate crypto securities.
The report explicitly recommends joint oversight between the CFTC and SEC, which many in the industry see as a pragmatic division of responsibilities. SEC Chair Paul Atkins supported the proposal, stating:
“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.”
Banking Reform and Digital Custody Rights
The working group also called for streamlined bank charters and a transparent framework to allow banks to provide digital asset services. This includes holding custody of crypto assets and offering tokenized payment solutions — a critical step for integrating traditional financial institutions into the blockchain economy.
The proposal aims to ease regulatory barriers for banks entering the crypto space, aligning with broader efforts to modernize U.S. financial infrastructure without compromising on compliance.
Stablecoins as Instruments of Dollar Hegemony
Notably, the report reaffirmed the administration’s support for stablecoins pegged to the U.S. dollar, identifying them as key tools for protecting and extending the dollar’s global influence. While rejecting the development of a Federal Reserve–issued central bank digital currency (CBDC), the report endorsed stablecoin issuers who maintain reserves in U.S. financial instruments.
In a subtle yet important acknowledgment, the report noted that:
“Stablecoin issuers can coordinate with law enforcement to freeze and seize assets to counter illicit use.”
This mirrors a major feature typically associated with CBDCs, but implemented in the private sector — a potential compromise that merges financial control with free-market innovation.
Crypto Taxation: Tailored and Transparent
The final section of the report urged Congress to pass custom digital asset tax legislation — particularly for staking income and transaction-based activity. The authors propose that cryptocurrencies be recognized as a distinct class of assets, subject to modified tax rules that reflect their hybrid characteristics as both commodities and securities.
“Legislation should be enacted that treats digital assets as a new class of assets subject to modified versions of tax rules applicable to securities or commodities for federal income tax purposes.”
This would resolve longstanding ambiguities in crypto tax reporting and could pave the way for mainstream institutional adoption.
@ Newshounds News™
Source: Cointelegraph
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