White House Report Says Stablecoins Will Keep Dollar Dominant

On Wednesday (July 30), the White House released its long-awaited report on digital asset policy, marking one of the most concerted federal efforts yet to bring structure to the cryptocurrency sector.

The report, developed over the past 180 days under Executive Order 14178, comes amid ongoing market volatility, legislative momentum on Capitol Hill and growing institutional interest in crypto-based finance.

Titled “ Strengthening American Leadership in Digital Financial Technology ,” the 166-page report proposes a framework for clearer regulation, outlines the administration’s position on digital assets like stablecoins and bitcoin, and floats ideas ranging from tax modernization to regulatory innovation.

“Much of the industry’s corporate infrastructure migrated offshore to avoid the unfavorable regulatory environment,” the President’s Working Group on Digital Asset Markets, which wrote the report, stated. “This approach nearly eliminated the opportunity for the United States to lead in this revolutionary technology.”

This report fulfills the mandate of Executive Order 14178, which directed the Working Group to propose policy and regulatory recommendations that protect Americans’ right to use digital assets and blockchains lawfully; promote innovation in financial infrastructure; reinforce the sovereignty of the U.S. dollar; and oppose implementation of a central bank digital currency (CBDC).

However, the report stops short of dramatic reform, offering principles more than prescriptions.

As U.S. policymakers try to catch up with innovation, the financial industry now finds itself at a crossroads.

Read more: Crypto Rulemaking Has FinTech Rushing in, TradFi Waiting to See

A Bid for Regulatory Clarity

For over a decade, U.S. crypto policy has been uncertainy. The Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have offered overlapping — often conflicting — interpretations of digital assets. Meanwhile, banks, FinTechs and payment providers have operated in legal gray zones, unsure which rules apply and which licenses are necessary.

The White House report tries to impose structure, endorsing legislation like the CLARITY Act, which would codify whether a token is a security or a commodity based on its features. In parallel, the GENIUS Act, passed earlier this month, establishes clearer rules for issuing and backing stablecoins.

The Working Group’s report also warned that delay in embracing stablecoins could threaten the dollar’s primacy: “Without strong U.S. leadership, the development of alternative payment arrangements may weaken the role of U.S. financial institutions, the dollar, and the effectiveness of U.S. national security tools.”

While these moves are unlikely to resolve all jurisdictional overlap, they send a message: the U.S. wants digital finance to function within a structured framework — not outside of it. Banking regulators are urged in the report to adopt technology-neutral risk frameworks, meaning banks will no longer face punitive treatment simply for touching blockchain or digital assets.

The report further recommended: “The relevant federal banking regulators should provide clarity and transparency regarding the process for eligible institutions to obtain a bank charter or a Reserve Bank master account.” This has long been a point of contention, as crypto-native firms and FinTechs have struggled to gain access to core banking infrastructure.

For payments, banking and financial services, the signal is that digital assets are here to stay, but at least they are taking up roost within a framework that emphasizes stability, investor protection and systemic risk management.

Still, not everyone is greeting the U.S. policy shift with enthusiasm. Sen. Elizabeth Warren leveled sharp criticism , accusing the administration of transforming the White House into a “crypto cash machine,” and warning of weakened institutions as former industry insiders occupy key posts.

Meanwhile, ethics watchdogs have also flagged potential conflicts of interest: 19 White House officials reportedly own between $875,000 and $2.35 million in crypto assets targeted for a potential U.S. national crypto reserve, according to government watchdog nonprofit Citizens for Responsibility and Ethics in Washington (CREW).

See also: 3 Things Payment Stakeholders Can All Agree On About Stablecoins

Blockchain, Wall Street and US Payments and Commerce

Traditional banks have viewed crypto with a mix of caution and curiosity. While some large institutions, such as JPMorgan, BNY Mellon and Citi, have built blockchain infrastructure or launched custody services, others have stayed on the sidelines.

The new policy landscape may give banks more reason to engage. The White House report encourages regulators to offer sandbox programs, support federally chartered crypto banks, and clarify rules around digital asset custody and stablecoin issuance.

But these efforts remain conceptual. In practice, U.S. banks still face operational, compliance and market risks if they move too quickly.

One lingering concern: deposit displacement. If stablecoins or tokenized treasuries become common stores of value, commercial banks could see deposits migrate to FinTechs or wallets. The White House acknowledged this but suggests competitive innovation — not regulatory intervention — should shape outcomes.

The report also urged the Treasury and IRS to “review previously issued guidance related to the timing of income from staking and mining and consider whether to clarify, modify, or reverse that guidance.”