USHERING IN THE GOLDEN AGE OF CRYPTO: When President Trump took office in January, he promised to make America the "crypto capital of the world." Today, the President's Working Group on Digital Asset Markets is releasing a report that provides a roadmap to make that promise a reality.
- Established by President Trump's Executive Order 14178 Strengthening American Leadership in Digital Financial Technology, the Working Group consists of officials throughout the Federal government and was tasked with submitting a report that recommends regulatory and legislative proposals to advance the policies established in the Order.
- By implementing these recommendations, policymakers can ensure that the United States leads the blockchain revolution and ushers in the Golden Age of Crypto.
POSITIONING AMERICA AS THE LEADER IN DIGITAL ASSET MARKETS:The Working Group determined that a fit-for-purpose market structure framework is essential to support growth and innovation in the digital assets industry, protect consumers, and keep the United States at the forefront of digital asset development. The Working Group recommends that:
- Congress build on the massive bipartisan House of Representatives vote for CLARITY by enacting legislation that:
- Eliminates existing gaps in regulatory oversight by providing the CFTC authority to oversee spot markets for non-security digital assets.
- Embraces DeFi technology and recognizes the potential of integrating such technology into mainstream finance.
- The SEC and CFTC use their existing authorities to:
- Immediately enable the trading of digital assets at the Federal level by providing clarity to market participants on issues such as registration, custody, trading, and recordkeeping.
- Allow innovative financial products to reach consumers without bureaucratic delays through the use of tools like safe harbors and regulatory sandboxes.
MODERNIZING BANK REGULATION FOR DIGITAL ASSETS: The Trump Administration has already ended Operation Choke Point 2.0 once and for all by working to end regulatory efforts that deny banking services to the digital assets industry. A sound and predictable banking regulatory framework that embraces the promise of blockchain technology will allow depository institutions to meet customer demand for core banking services for digital assets, and make it easier for those customers to access digital asset markets. The Working Group recommends that regulators take additional actions to:
- Relaunch crypto innovation efforts to clarify permissible bank activities in custody, tokenization, stablecoin issuance, and the use of blockchains.
- Promote transparency regarding the process for institutions to obtain bank charters or Reserve Bank master accounts.
- Ensure that bank capital rules are aligned with the actual risks associated with digital assets, not simply the fact of their presence on a distributed ledger.
STRENGTHENING THE ROLE OF THE U.S. DOLLAR: The widespread adoption of dollar-backed stablecoins will modernize payments infrastructure and allow the United States to move away from costly and outdated legacy systems. On July 18, 2025, President Trump signed the historic GENIUS Act into law, which creates the first-ever Federal regulatory framework for stablecoins. The Working Group recommends that:
- Treasury and the banking agencies faithfully and expeditiously implement the GENIUS Act.
- Congress take additional action to protect privacy and civil liberties by passing the Anti-CBDC Surveillance State Act to codify the provisions of the President's Executive Order banning Central Bank Digital Currencies in the United States.
COMBATING ILLICIT FINANCE IN THE DIGITAL AGE: By modernizing our anti-money laundering rules, the United States can be a leader in financial innovation while protecting our national security interests. The Working Group recommends that:
- Treasury and the appropriate regulators provide clarity regarding BSA obligations and reporting.
- Congress reinforce the importance of self-custody and clarify the AML/CFT obligations of actors within the decentralized finance ecosystem.
- Regulators work to prevent the misuse of authorities to target lawful activities of law-abiding citizens and protect citizens' privacy.
ENSURING FAIRNESS AND PREDICTABILITY IN DIGITAL ASSET TAXATION: Our tax rules must align with new technologies and eliminate compliance hurdles for both individuals and businesses engaged in activities involving digital assets. The Working Group recommends that:
- Treasury and the IRS reduce burdens on taxpayers by publishing guidance on topics related to CAMT, wrapping transactions, and de minimis receipts of digital assets.
- Treasury and the IRS review previously issued guidance on the tax treatment of activities like mining and staking.
- Congress enact legislation that treats digital assets as a new class of assets subject to modified versions of tax rules applicable to securities or commodities for Federal income tax purposes and add digital assets to the list of assets subject to wash sale rules.
