Legal Clarity for Crypto Looms as White House Pushes Congressional Action in Report
Washington, D.C., July 31, 2025 – The Trump administration has unveiled a comprehensive 166-page report from the President’s Working Group on Digital Asset Markets, marking a pivotal moment for the cryptocurrency industry in the United States. The report, released on Wednesday, outlines a robust framework aimed at providing legal and regulatory clarity for digital assets, urging Congress and federal regulators to act swiftly to cement America’s position as the global leader in blockchain and cryptocurrency innovation.
The report comes on the heels of significant legislative progress, with the House of Representatives passing the Clarity Act just two weeks ago. This bill, which seeks to establish broad regulatory guidelines for cryptocurrencies, is now under consideration in the Senate. Earlier this month, President Donald Trump signed the Genius Act into law, creating federal rules for stablecoins—cryptocurrencies pegged to the U.S. dollar—a move hailed as a major victory for the digital asset sector. The White House, however, emphasizes that the Clarity Act represents the next critical step, with far-reaching implications for the industry.
The Working Group, comprising key figures such as Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick, and SEC Chair Paul Atkins, calls for a formal crypto regulatory regime. The report urges Congress to include provisions allowing trading platforms to custody crypto assets and establishing a tailored disclosure regime for issuers of crypto securities. It also recommends that the Commodity Futures Trading Commission (CFTC) be granted authority to oversee crypto spot markets and that lawmakers recognize the potential of decentralized finance (DeFi) technologies, which enable transactions without intermediaries.
“The days of agencies issuing divergent policies and one agency or principal delaying action are over,” said Matt Bisanz, a partner at Mayer Brown, highlighting the administration’s push for unified and clear regulations. The report further encourages the SEC and CFTC to leverage their existing authorities to enable digital asset trading at the federal level immediately, signaling an aggressive pro-innovation stance.
The crypto industry has long argued that existing U.S. regulations are ill-suited for digital assets, creating uncertainty about whether a crypto token qualifies as a security, commodity, or another category like stablecoins. This lack of clarity has led to high-profile legal battles, with the SEC under the Biden administration asserting that most cryptocurrencies are securities subject to stringent oversight. The new report aims to resolve these ambiguities, providing a “regulatory Bible” for the sector, as one industry leader described it.
However, the administration’s strong support for crypto has raised concerns about potential conflicts of interest. President Trump’s family has launched cryptocurrency meme coins, and the president holds a stake in World Liberty Financial, a crypto platform. Critics, including Tony Carrk of Accountable.US, argue that the report prioritizes industry interests over consumer protections, calling it “an industry wishlist masked as government policy.” The White House has denied any conflicts, stating that Trump’s assets are managed in a trust by his children.
The report also addresses broader issues, including modernizing bank regulations to facilitate crypto-related services, combating illicit finance through updated anti-money laundering rules, and ensuring fair taxation policies for digital assets. It notably omits detailed plans for a controversial proposal to create a federal digital asset stockpile, including a strategic Bitcoin reserve, though officials indicate more information will follow.
Industry leaders have lauded the report as a crucial step toward legitimizing digital asset markets. James Butterfill, head of research at CoinShares, called it “highly ambitious and ideologically clear,” though he cautioned that its success hinges on bipartisan legislative action and regulatory execution.
As the Senate deliberates the Clarity Act, the crypto industry remains optimistic but cautious. The bill’s passage in the House with bipartisan support (294-134) reflects growing acceptance of digital assets, but critics like Amanda Fischer, a former SEC official, warn that it could retroactively shield the industry from accountability for past misconduct.
With the global crypto market surging—Bitcoin alone has risen 74% since Election Day 2024, and the industry has added $1.57 trillion in market cap—the stakes are high. The White House’s push for regulatory clarity signals a transformative shift, but the path forward will depend on Congress’s ability to navigate political divisions and deliver legislation that balances innovation with financial integrity.