The U.S. Government Releases Encryption Policy Report: Reshaping the Digital Finance Landscape

Recently, the U.S. government released an important encryption policy report, which was formulated based on an executive order signed in early 2025. The report was jointly completed by the Department of the Treasury, the Securities and Exchange Commission, the Commodity Futures Trading Commission, the Federal Reserve, and the White House economic team, aiming to establish a unified strategy for cryptocurrency policy in the United States.

Main Content Interpretation

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

The report emphasizes that the United States intends to maintain its global leadership in the digital finance sector, particularly in Bitcoin, stablecoins, and on-chain assets. To achieve this goal, the United States plans to solidify its position by clarifying regulations, encouraging innovation, and attracting capital investment.

2. Regulatory Framework for Stablecoins

For stablecoins, the report puts forward a series of regulatory requirements. Issuers of stablecoins pegged to the US dollar must meet the following conditions:

• Obtain relevant licenses
• Maintain sufficient cash reserves
• Ensure timely payment capability
• Accept regular audits
• Implement consumer protection measures
• Prohibition of false advertising

This framework is similar in some ways to the practices of Hong Kong and the European Union, but it is more inclined to encourage innovation in the private sector rather than launching an official stablecoin.

3. Divisions of Regulatory Agency Responsibilities

The report recommends that Congress enact legislation as soon as possible to clarify the regulatory scope of the Securities and Exchange Commission and the Commodity Futures Trading Commission:

• Securities-related assets are regulated by the Securities and Exchange Commission.
• Commodity assets (such as Bitcoin) are regulated by the Commodity Futures Trading Commission.
• Stablecoins and trading platforms will establish separate licensing mechanisms.

4. Veto Central Bank Digital Currency

The White House has made it clear that it will not issue a central bank digital currency (CBDC), citing reasons including:

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

This position is consistent with the core claims of the Republican Party in recent years.

5. Encryption asset tax and pension policies

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 mainstream encryption currencies that meet security standards to be included in retirement accounts (401k)

6. National-level blockchain infrastructure investment

The report suggests utilizing national funds to support the following areas:

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

This may lead to the establishment of institutions similar to "On-chain DARPA" or national innovation centers.

7. Bitcoin reserve strategy

Although the report did not explicitly propose a government plan to purchase Bitcoin, it mentioned that "a long-term stable Bitcoin policy can strengthen the diversification of national strategic assets," sparking market speculation that the U.S. government may consider holding Bitcoin.

Summary of Policy Report Highlights

• The United States will not ban encryption, but is committed to regulating and institutionalizing it.
• The government does not issue central bank digital currency but supports the development of private stablecoins.
• Urge Congress to pass relevant regulations as soon as possible to clarify the responsibilities of regulatory agencies.
• The United States strives to dominate the global encryption financial sector.

This report clearly outlines the strategic direction of the United States in the fields of cryptocurrency and blockchain technology, demonstrating the U.S. government's emphasis and forward-thinking approach towards this emerging sector.