Overview of the Trump Administration's Regulatory Framework and Legislative Proposals for Crypto Assets

Key Chapter Title List

1. Introduction – Regulatory Orientation of the Trump Administration
2. Key Legal and Regulatory Issues
3. Trump Administration: Key Nominees and Appointees
4. SEC Regulatory Path and Challenges
5. CFTC Regulatory Path – Current Status and Outlook
6. Banking Regulators: Current Regulatory Approach and Prospects
7. BSA/AML and Sanctions Compliance
8. Federal Legislative Needs and Key Bills
9. State-Level Regulatory Systems

Document Introduction

This report aims to systematically review and analyze the policy shifts, key personnel appointments, regulatory agency reform directions, and related legislative proposals in the field of crypto-asset regulation during the early stages of the second term of the U.S. Trump administration. Based on the Executive Order on "Strengthening American Leadership in Digital Financial Technology" signed by President Trump on January 23, 2025, and its subsequent developments, the report contrasts the regulatory stance of the previous administration and outlines the new administration's regulatory blueprint aimed at propelling the United States to become the "global crypto capital" and a "Bitcoin superpower."

The report begins by outlining the Trump administration's shift from a skeptical stance towards digital assets during its first term to positioning itself as an ally of the crypto-asset industry during the campaign, garnering support from prominent figures like Marc Andreessen and Elon Musk. The core policy document—the 2025 Executive Order—marks a significant departure from the Biden administration's "regulation-by-enforcement" approach. Its goal is to establish a federal policy that promotes the "responsible growth and use of digital assets, blockchain technology, and related technologies across all sectors of the economy" and achieves "regulatory clarity and certainty." The order promotes regulatory coordination by establishing a working group of relevant agency heads led by a "Crypto Czar," requiring agencies to review existing regulations, and setting a timeline (30, 60, 180 days) for proposing legislative and regulatory reforms. The report also notes that the order explicitly prohibits any work towards advancing a Central Bank Digital Currency (CBDC).

The main body of the report delves into an analysis of the current status and anticipated changes at key regulatory agencies. Regarding the Securities and Exchange Commission (SEC), the report discusses the potential shifts in regulatory philosophy brought by the new Chair nominee Paul Atkins and key commissioners (such as Hester Peirce and Mark Uyeda), including a move from "enforcement-first" to clearer rulemaking, providing more explicit guidance on the application of the Howey Test, the potential establishment of a regulatory sandbox, and easing restrictions on crypto-asset ETFs (including staking features) and broker-dealer custody rules (such as Rule 15c3-3). The report also mentions the repeal of SAB 121 and its impact.

Regarding the Commodity Futures Trading Commission (CFTC), the report analyzes its traditional stance of treating Bitcoin, Ethereum, etc., as commodities and the limitations of its regulatory authority, while also looking ahead to the prospect of its jurisdiction potentially being expanded through legislation under the Trump administration. Simultaneously, the report outlines potential leadership candidates, including Caroline Pham, and their positive attitudes towards crypto-assets.

The report examines in detail the historically cautious stance of federal banking regulators (the Federal Reserve, OCC, FDIC) towards bank involvement in crypto-asset-related activities and the potential for a "more open mindset" under new leadership (such as Acting FDIC Chairman Travis Hill). Using a table format, the report systematically reviews the current legal permissibility and regulatory outlook for various bank crypto activities (such as traditional banking services, stablecoin reserve accounts, custody services, loan collateral, issuing and holding crypto-assets), and points out opportunities that may arise from changes like the repeal of SAB 121.

Furthermore, the report assesses the likely continued enforcement focus in the Bank Secrecy Act/Anti-Money Laundering and sanctions compliance areas under bipartisan consensus, although regulatory pressure may be adjusted. The core section of the report focuses on federal legislative needs, outlining the main content, progress, and potential impact of key proposals such as the Lummis-Gillibrand Payment Stablecoin Act, the 2024 BITCOIN Act, and the Financial Innovation and Technology for the 21st Century Act (FIT21). These bills aim to address fundamental issues like crypto-asset classification, division of regulatory authority, and a stablecoin regulatory framework.

Finally, the report briefly mentions the diversity and uncertainty of state-level regulatory systems, noting that changes at the federal level may trigger corresponding adjustments in state regulatory strategies. For example, the New York State Department of Financial Services has indicated readiness to "fill the gap" should federal regulation ease.

Based on public statements, executive orders, proposed legislation, regulatory guidance, and industry analysis, this report provides policymakers, financial institutions, crypto-asset industry participants, and researchers with a comprehensive reference for understanding the evolution and future path of the Trump administration's crypto-asset regulatory strategy.