U.S. releases report on strengthening cryptocurrency leadership

Written by: Bao Yilong

Source: Wall Street News

The U.S. government has released a landmark cryptocurrency policy report aimed at strengthening America's leadership in the field of cryptocurrencies.

On July 30, the White House issued a 166-page report entitled "Strengthening American Leadership in Digital Financial Technologies". However, it still did not mention how many bitcoins the U.S. government currently holds, nor did it provide new details on whether the government will actively purchase bitcoins.

Earlier that day, as mentioned by Wall Street News, the Federal Reserve's interest rate decision finally left the policy rate unchanged in July as expected. At the same time, Powell did not give guidance on a September rate cut, emphasizing the uncertainties surrounding tariffs and inflation, and stating that the job market had not weakened. Bitcoin once fell 2.5% from its intraday high. Although the price of Bitcoin rebounded after the release of the report, it still remained in a downward trend.

Details of the White House Report: Seeking Regulatory Clarity

Although the report released by the White House is lengthy, its core content is to provide the industry with a clearer legislative and regulatory framework, with key recommendations covering legislative, regulatory and tax aspects.

Legislative Aspects:

- Propose that Congress legislate to confirm individuals' right to transfer crypto assets without intermediaries and store them in self-custody wallets;

- Authorize Congress to ban central bank digital currencies (CBDCs);

- Protect software developers who build decentralized trading methods;

- Clearly grant the Commodity Futures Trading Commission (CFTC) the authority to regulate the spot market for non-securities digital assets.

Regulatory and Tax Aspects:

- Recommend that federal banking regulators adopt technology-neutral risk management measures to avoid discriminating against legitimate crypto businesses.

- Require the U.S. Treasury Department and the Internal Revenue Service to issue new tax guidance on specific transactions (such as staking) and design simpler reporting rules for digital asset exchanges.

- Call on Congress to amend the tax law to include digital assets in provisions such as wash-sale rules and securities lending.

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