White House Report Calls for SEC Action and New Legislation on Cryptocurrency
July 30, 2025 – Reuters
In a significant move aimed at shaping the future of the cryptocurrency industry, a crypto working group established by President Donald Trump has released a policy report recommending bold regulatory steps. The White House report urges the U.S. Securities and Exchange Commission (SEC) to develop new rules specifically tailored to digital assets and calls on Congress to pass comprehensive legislation to establish a formal crypto regulatory framework.
A Push for Clearer Crypto Regulations
The report, published Wednesday, outlines the administration’s position ahead of a landmark crypto policy report and stresses the need for Congress to enact legislation that would clearly define the regulatory environment for digital assets. The White House is advocating for a bill that not only creates a formal regulatory regime but also incorporates provisions allowing trading platforms to custody cryptocurrencies and establishing a disclosure regime tailored to issuers of crypto securities.
Alongside urging legislative action, the White House encourages both the SEC and the Commodity Futures Trading Commission (CFTC) to utilize their existing authorities to "immediately enable the trading of digital assets at the federal level."
Background and Administration’s Crypto Stance
President Trump ordered the formation of this crypto working group in January soon after taking office, fulfilling a campaign promise to revamp the United States’ approach to digital currencies. The group’s task has been to propose new regulatory standards that align with the administration’s pro-crypto policy goals.
The task force comprises prominent figures within the administration, including Treasury Secretary Scott Bessent, SEC Chair Paul Atkins, and Director of the Office of Management and Budget Russell Vought, under the leadership of Bo Hines.
Trump’s approach sharply contrasts with the prior Biden administration, which pursued aggressive regulatory actions against major cryptocurrency exchanges such as Coinbase and Binance, seeking to curb fraud and money laundering risks. Notably, since Trump took office, the SEC has dropped several lawsuits initiated under the previous administration.
Legislative Context and Industry Impact
This policy push coincides with recent legislative developments: just two weeks ago, the House of Representatives passed the Clarity Act, which provides broad regulatory guidelines for the crypto market, and the Senate is currently considering its own version of this measure.
Earlier this month, President Trump signed federal stablecoin regulations into law, a move celebrated as a major victory for digital asset proponents. Nevertheless, the White House encourages Congress to prioritize market structure legislation, like the Clarity Act, which carries broader implications for the industry.
The report also requests that Congress grant the CFTC authority to oversee crypto spot markets and acknowledges the innovative potential of decentralized finance (DeFi) platforms — blockchain-based systems enabling peer-to-peer transactions without traditional intermediaries.
Encouraging Innovation Within Regulation
The report recommends that the SEC and CFTC employ safe harbors and regulatory sandboxes, thus fostering innovation and allowing new financial products to reach consumers without excessive bureaucratic delays. One highlighted area is tokenization — the process of transforming financial assets such as stocks, bonds, real estate, or bank deposits into blockchain-based crypto tokens.
Crypto firms, including Coinbase, have expressed interest in gaining regulatory approval to offer tokenized stocks, though the SEC has yet to publicly address such requests.
Industry and Political Implications
The crypto sector has long argued that existing U.S. regulations inadequately address the unique features of digital assets. Industry advocates have called for distinct regulatory definitions to clarify when a crypto token qualifies as a security, commodity, or another asset class like stablecoins.
President Trump’s support for the crypto industry has sparked some conflict-of-interest concerns. His family’s involvement with cryptocurrency meme coins and his ownership stake in World Liberty Financial, a crypto platform, have drawn scrutiny. However, the White House denies that these represent any conflicts impacting policy.
Looking Ahead
As Congress debates crypto legislation, the White House’s report could greatly influence the conversation, emphasizing the administration’s commitment to a pro-crypto regulatory environment that balances innovation with market integrity and consumer protection.
Reporting by Hannah Lang in New York; editing by Pete Schroeder, Matthew Lewis, Rod Nickel, and Nick Zieminski.
About the Author:
Hannah Lang is a journalist covering financial technology and cryptocurrencies, focusing on the businesses and policy developments shaping the industry. She previously reported on bank regulation and the Federal Reserve for American Banker and is based in Washington, D.C.