The U.S. Government Releases Encryption Policy Report: Depth Analysis

Recently, the U.S. government released an important encryption policy report, which was prepared based on a new executive order signed in early 2025. The report was jointly compiled by multiple government departments, including the Department of the Treasury, the Securities and Exchange Commission, the Commodity Futures Trading Commission, the Federal Reserve, and the White House economic team. Let's delve into the main content of this report.

The United States' Leadership in the Digital Finance Sector

The report emphasizes that the United States aims to maintain and strengthen its global leadership position in the digital finance sector, particularly in areas such as Bitcoin, stablecoins, and on-chain assets. To achieve this goal, the government plans to promote industry development through clear regulations, encouraging innovation, and attracting capital investment.

Stablecoin Regulatory Framework

For stablecoins, the report proposes 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 redemption capability
• Accept regular audits
• Implement consumer protection measures
• Prohibition of false advertising

This practice is somewhat similar to the policies of Hong Kong and the European Union, but it encourages innovation among private enterprises more.

Division of Responsibilities of Regulatory Authorities

The report suggests that Congress should legislate as soon as possible to clearly delineate the regulatory scope of the Securities and Exchange Commission and the Commodity Futures Trading Commission:

• Securities assets are managed by the Securities and Exchange Commission.
• Commodity assets (such as Bitcoin) are regulated by the Commodity Futures Trading Commission.
• For stablecoins and trading platforms, it is recommended to establish a separate licensing mechanism.

Central Bank Digital Currency (CBDC) Position

The government has clearly stated that it will not issue a central bank digital currency, for reasons including:

• May infringe on citizens' privacy
• Granting excessive power to the government
• Does not comply with the principles of the American free market.

This position is consistent with the Republican Party's views in recent years.

Encryption Asset Taxation and Pension Policy

The report also involves the taxation and pension policies of encryption assets:

• The tax bureau will release new guidelines to clarify the tax treatment of encryption assets.
• Employers may consider including mainstream cryptocurrencies that meet security standards in 401k retirement accounts.

Blockchain Infrastructure Investment

The government recommends investing national funds to support the following areas:

• On-chain settlement system
• Government Compliance Tools
• encryption audit technology
• Privacy protection technologies such as zero-knowledge proofs

There may be the establishment of specialized national-level innovation centers to promote the development in these areas.

Attitude Towards Bitcoin

Although the report did not explicitly mention the government's plan to purchase Bitcoin, it hinted that a long-term stable Bitcoin policy could aid in the diversification of national strategic assets. This has sparked speculation in the market that the government may consider holding Bitcoin.

Summary

This report conveys several key messages:

1. The United States will not ban encryption assets, but is committed to regulating and institutionalizing this field.
2. The government will not issue a central bank digital currency but supports the private sector in issuing stablecoins.
3. Call on Congress to pass relevant legislation as soon as possible to clarify the division of responsibilities among regulatory agencies.
4. The United States hopes to dominate the global encryption financial sector.

This report indicates that the U.S. government is actively adapting to and guiding the development of the encryption asset industry to maintain its leadership position in the global financial system.