In a massive, 513-page annual economic report released today, the White House downplayed the significance of cryptocurrencies, highlighting their negative aspects and describing them as risky for both consumers and the entire U.S. financial system.

The Economic Report of the President is an annual publication by the Council of Economic Advisers aimed at explaining the President's economic priorities and policies. The latest report included an entire chapter on digital assets and "economic principles."

The report asserts that "blockchain technology has fueled the rise of financially innovative digital assets that have proven to be highly volatile and subject to fraud."

Chapter 8 assessed several assertions and objectives presented by the cryptocurrency industry, spanning from its use as investment instruments and payment mediums to its potential application in payment systems, highlighting that "many of them do not have a fundamental value." 

"In addition to the decentralized custody and control of money, it has been argued that crypto assets may provide other benefits, such as improving payment systems, increasing financial inclusion, and creating mechanisms for the distribution of intellectual property and financial value that bypass intermediaries," the authors wrote in the report. "So far, crypto assets have brought none of these benefits."

The report also acknowledged that "some crypto assets appear to be here to stay," though it went on to note that "they continue to cause risks for financial markets, investors and consumers."