tl;dr
Bitcoin's price declined following the release of a 166-page White House crypto policy report titled "Strengthening American Leadership in Digital Financial Technology." The report does not disclose US government Bitcoin holdings or plans for purchases. The Federal Reserve maintained interest rates,...
Bitcoin’s price is moving to the downside following the release of an extensive 166-page crypto policy report by the White House titled “Strengthening American Leadership in Digital Financial Technology.” The report does not clarify how much Bitcoin the US government holds nor does it reveal plans for active BTC purchases. Concurrently, the Federal Reserve has decided once again against cutting interest rates, with Chair Jerome Powell emphasizing continued monitoring of inflation impacts from President Trump’s tariffs.
The report proposes several legislative actions, urging Congress to affirm the right of individuals to transfer crypto assets without intermediaries and to hold them in self-custody wallets. It also recommends banning Central Bank Digital Currencies (CBDCs) and protecting developers who create decentralized transaction methods. Additionally, the report suggests giving the Commodity Futures Trading Commission (CFTC) clear authority to regulate spot markets for non-security digital assets.
Other recommendations include urging federal banking regulators to adopt technology-neutral risk management practices to avoid discrimination against lawful crypto businesses. The report calls for implementation of the GENIUS Act, support for US dollar-backed stablecoin development, and directs the Treasury Department and IRS to update guidance on financial statement income, staking, wrapping/unwrapping transactions, and to propose less burdensome reporting regulations for digital asset exchanges.
Furthermore, Congress is encouraged to amend tax laws to encompass digital assets within wash sale rules, securities loans, and other related provisions. In reaction to the report's release, Bitcoin’s price dropped from a 24-hour high of $118,742 to as low as $115,521, with BTC priced at $116,558 at the time of publishing.