What the White House Crypto Report Means for States
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The recently released White House’s 2025 digital asset strategy (EO 14178) is clear: America wants to be the Crypto Capital of the World, but that’s not just a federal job. States have a huge role to play in turning that vision into reality.
What’s in the Report?
Self-Custody & Open Blockchain Access: The report explicitly supports the right of individuals to hold digital assets directly and transact peer-to-peer without intermediaries. It calls for legislation affirming this principle and protecting access to open, public blockchain networks.
Regulatory Clarity for Developers: Developers of non-custodial protocols and open-source infrastructure should not be regulated as financial institutions. The report urges agencies to distinguish between those who hold customer funds and those who simply publish code or operate decentralized infrastructure.
CFTC Oversight of Spot Markets: Congress is encouraged to grant the CFTC clear authority over spot markets in non-security digital assets, paving the way for regulated exchanges and enhanced market confidence.
Fit-for-Purpose SEC Exemptions: The SEC is called upon to use its authority under the Securities Act to craft a customized exemption for token issuances, creating a clearer path for compliant, domestic innovation.
Tailored Disclosure for Digital Asset Securities: Issuers of tokenized financial products should be subject to disclosure rules that reflect the unique nature of digital assets, rather than forcing legacy frameworks onto blockchain-native models.
Legal Protection for DeFi: The report recommends legal clarity for DeFi protocols that operate autonomously and do not hold user funds, ensuring that open-source software isn’t driven offshore due to regulatory ambiguity.
Stablecoins as Strategic Infrastructure: U.S. dollar-backed stablecoins are positioned as a core pillar of payment modernization and dollar strength, referencing the GENIUS act that was signed into law July 18, 2025. The report supports private-sector leadership in stablecoin development, while opposing the creation of a U.S. CBDC.
Ending Choke Point 2.0: Federal banking regulators are urged to adopt technology-neutral, industry-agnostic guidance and re-launch innovation offices to support lawful engagement with digital assets. The report also recommends transparent pathways to bank charters and master accounts.
Modernizing AML/CFT Policy: Agencies are directed to update FinCEN guidance (especially from 2013 and 2019) and clarify BSA obligations, particularly for non-custodial entities and foreign-located actors.
Tax Reform for Digital Assets: Treasury and IRS are encouraged to address outstanding tax questions: like staking, wrapping, and de minimis use, and develop digital asset–specific rules that reflect their treatment as a distinct asset class.
What Does It Mean for Individual States?
Here’s how state legislatures can craft fit-for-purpose laws that match their strengths, protect citizens, and attract innovation. We’ve broken it down into some recommendations for all states, and some others that play to the strengths of individual states.
Universal Moves Every State Should Make
These are the must-haves – regardless of size, region, or industry.
Protect Self-Custody Rights
Make it crystal clear: people can hold their own crypto, run nodes, and use public blockchains for lawful purposes.
Greenlight USD-Backed Stablecoins
Recognize fully-reserved, dollar-backed stablecoins for commerce and even state fee payments. It strengthens U.S. dollar dominance in the digital age.
End Debanking of Lawful Crypto Businesses
Pass “fair access” laws so banks can’t cut off services just because a customer works in crypto.
Write Tech-Neutral, Clear Rules
Define digital assets in state law, update the UCC, and align rules across agencies so entrepreneurs know exactly where they stand.
Ban a Federal CBDC in Your State
Protect financial privacy by rejecting a U.S. central bank digital currency – while promoting private-sector innovation.
Playing to Your State’s Strengths
Energy-Rich States
Leverage cheap or excess power for crypto mining, especially using stranded natural gas or off-peak renewables. Offer tax breaks for green mining, and integrate miners into grid stability programs like Texas does.
Further Reading:
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Agriculture & Supply Chain States
Use blockchain to track farm-to-table supply chains, prove product quality, and speed up recalls. Fund pilots for blockchain-based crop data, livestock tracking, and commodity provenance.
Further Reading:
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Finance Hubs
Create special bank charters for crypto firms, modernize securities laws for utility tokens, and launch regulatory sandboxes. Recognize stablecoins in commerce and explore local government blockchain pilots (think MiamiCoin).
Further Reading:
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Defense & Military Infrastructure States
Deploy blockchain for secure defense supply chains, critical infrastructure logging, and tamper-proof identity systems. Offer grants for blockchain-based national security solutions.
Further Reading:
