The White House Crypto Council, formed under President Trump’s executive order revocation and updated digital asset strategy, is taking an active role in reshaping crypto policy. The council, part of the President’s Working Group on Digital Asset Markets, aims to establish clear regulations, foster innovation, and reinforce the U.S.’s leadership in digital finance.
Chaired by David Sacks, the AI & Crypto Czar, the council includes agencies like the SEC, CFTC, and Treasury, alongside industry advisors such as Ripple CEO Brad Garlinghouse. Their collective mission is to bridge policy gaps and create a more effective regulatory framework for digital assets.
BREAKING: The White House is listening@BoHines Executive Director of the White House Crypto Council, sat down with leaders from Constellation, Near, Filecoin, Ripple, IOHK, Avalanche, Aptos, Mysten, Chia, and Movement Protocol to discuss the industry’s biggest challenges.… pic.twitter.com/qSTztxrzDm
— Dagnum P.I. (@Dagnum_PI) February 15, 2025
New Regulatory Priorities and Policy Shifts
A major priority of the council is the development of a federal regulatory framework for stablecoins and digital assets. The GENIUS Act proposes that the Federal Reserve take the lead in overseeing dollar-backed stablecoins, ensuring their role in maintaining the dominance of the U.S. dollar in global finance.
Another critical initiative under review is the creation of a national digital asset stockpile. Policymakers are considering whether seized cryptocurrencies, such as Bitcoin, XRP, and Solana, could serve as part of a strategic reserve. However, concerns remain over the volatility risks associated with holding digital assets as part of national reserves.
One of the most striking policy shifts is the explicit ban on Central Bank Digital Currencies (CBDCs). Unlike the previous administration, which explored the possibility of a U.S. CBDC, the new directive prohibits them outright. The decision reflects concerns over financial sovereignty and privacy risks, positioning the U.S. against global trends favoring central bank-controlled digital currencies.
Constellation DAG Network Joins Top Minds in DLT
Incredible meeting today with White House Crypto Council Executive Director @BoHines. @DigitalChamber @FilFoundation @StellarOrg @Ripple @IOHKMedia @AptosLabs @movementlabsxyz @Mysten_Labs @AvaLabs
#AmericasBlockchains pic.twitter.com/VDNW8akONv
— Constellation Network (@Conste11ation) February 13, 2025
Engaging with Industry Leaders
On February 14, 2025, top blockchain leaders from Ripple, Constellation, Aptos, Near, Filecoin, Avalanche, IOHK, and several others met with the council to discuss pressing regulatory issues. The meeting reinforced the need for swift action on crypto legislation and identified key areas requiring reform.
One of the primary concerns raised was the need for fast-tracking industry-friendly legislation. Participants criticized the previous administration’s “regulation by enforcement” approach, emphasizing that delays in regulatory clarity continue to push innovation offshore. They urged the council to introduce clear guidelines that would allow blockchain projects to thrive in the U.S.
The shifting of regulatory burdens from developers to exchanges was another major point of discussion. Leaders argued that compliance obligations should not fall on developers, who are primarily focused on building technology. Instead, the regulatory burden should be placed on centralized exchanges, where most trading activity occurs. This approach aligns with the growing push for clearer jurisdictional boundaries between the SEC and CFTC regarding digital asset oversight.
Token incentives were also a major focus of the discussion. Industry executives called for a reassessment of how token rewards, such as staking and liquidity mining, are classified. They argued that these incentives should be treated similarly to airline loyalty programs rather than securities. Ben Jorgensen, CEO of Constellation, highlighted the double standard, pointing out that airlines have issued over $40 billion in rewards without requiring new laws, yet tokenized assets face strict regulations.
A final key issue revolved around the need for regulatory clarity for Layer-1 (L1) blockchain ecosystems. Developers emphasized the importance of establishing clear pathways for permissionless networks and self-custody rights. Without regulatory clarity, Layer-1 networks face uncertainty that could stifle long-term growth and innovation.
Legislative Changes and the Road Ahead
The council is also moving forward with significant SEC reforms under the leadership of pro-crypto SEC Chair Paul Atkins. His agenda includes ending the “regulation by enforcement” strategy and clarifying asset classifications. One of the key priorities is revising custody rules, including the potential rollback of SAB 121, a policy that has made institutional participation in crypto markets more difficult.
At the same time, discussions around crypto-friendly tax code changes are gaining momentum. The council recognizes that simplifying tax laws related to digital assets could encourage more blockchain-based investment and development within the U.S. Many in the industry are watching closely to see whether these efforts will make the U.S. more competitive against the EU’s MiCA framework, which has provided greater regulatory clarity for European crypto businesses.
Privacy and compliance concerns remain an ongoing challenge for regulators. The recent refusal by Railgun to process hacked funds illustrates the complex balance between financial privacy and crime prevention. The White House Crypto Council aims to introduce clearer AML/KYC guidelines that uphold user privacy while ensuring compliance with anti-money laundering laws.
What’s Next: The Roadmap for Crypto Policy
The White House Crypto Council’s latest engagements mark a significant shift in U.S. crypto regulation. While discussions have been productive, the real challenge lies in implementing these policies effectively. Over the next several months, key developments to watch include the fate of the GENIUS Act, ongoing SEC reforms, and efforts to position the U.S. as a leader in blockchain regulation.
Policymakers are also expected to refine their stance on tax incentives for Web3 investments and digital asset classification. Industry leaders, including Brad Garlinghouse and Ben Jorgensen, continue to advocate for clearer rules that foster innovation while maintaining investor protections.
With the Working Group’s July 2025 report expected to outline the next phase of crypto regulation, stakeholders should remain engaged in these policy discussions. The race to make the U.S. the global hub for blockchain innovation is well underway, and the coming months will be crucial in determining how the regulatory landscape unfolds.
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