White House Unveils Digital Asset Strategy to Bridge TradFi and Crypto

The White House has released a landmark 2025 report setting a clear U.S. strategy to integrate traditional finance with crypto and DeFi. The plan promotes innovation, regulatory clarity, and financial stability in the evolving digital asset market.

August 1, 2025

Crypto Reserves Mission Not Included

While there has been public discussion about the U.S. government potentially creating a Strategic Bitcoin Reserve and a Digital Asset Stockpile to leverage seized cryptocurrencies, this specific initiative is not mentioned or detailed in the White House’s 2025 digital asset strategy report. The report focuses primarily on regulatory frameworks, innovation, and market integrity without addressing any government-held crypto reserves or asset management programs.

A Unified Federal Approach to Digital Assets

On July 30, 2025, the White House issued a 180-day report crafted by the President’s Working Group on Digital Asset Markets. It sets out a cohesive federal strategy to accelerate U.S. leadership in digital financial technology while addressing risks from crypto, decentralized finance (DeFi), and blockchain innovation.

The report responds to President Trump’s January 2025 Executive Order aiming to harmonize regulatory oversight and promote a vibrant, secure digital asset ecosystem.

Key Recommendations for Regulatory Clarity and Growth

The strategy advocates bipartisan legislation to close existing regulatory gaps, notably empowering the Commodity Futures Trading Commission (CFTC) to regulate spot markets for non-security digital assets. This move is designed to clarify jurisdiction and improve market stability.

Agencies like the SEC and CFTC are urged to deliver prompt guidance on token registration, custody, and trading, creating a federally regulated environment supportive of innovation.

Embracing DeFi and TradFi Integration

Recognizing DeFi’s transformative potential, the report calls for thoughtful integration of decentralized protocols with traditional financial infrastructure. It highlights the need for regulatory “safe harbors” and innovation sandboxes, allowing new products to reach consumers safely and efficiently.

The strategy also prioritizes modernization of bank regulations, facilitating participation by established financial institutions in the growing digital asset space.

Strengthening U.S. Dollar and Combating Risks

The document emphasizes supporting lawful, dollar-backed stablecoins to maintain U.S. monetary leadership and ensure secure payment systems. It also outlines measures to combat illicit finance, enhance tax compliance, and safeguard market integrity amidst rapid crypto adoption.

Positioning the U.S. as a Global Leader in Digital Finance

The White House initiative marks a decisive shift toward clear, innovation-friendly policies that blend the strengths of traditional finance with the promise of blockchain and DeFi. Treasury Secretary Scott Bessent highlights the ambition to foster economic growth and global competitiveness through a transparent, federally regulated digital asset frontier.

The report’s success will depend on regulatory and legislative follow-through, with ongoing efforts like the CLARITY Act forming part of the evolving framework.