The White House has issued a fact sheet regarding the President’s Working Group on Digital Asset Markets.
This working group was established under President Trump’s Executive Order 14178 in January. The EO was part of a broader government inititive to support digital asset innovation, something that was crippled during the Biden Administration.
While declaring the “Golden Age of Crypto,” the White House stated that the report provides a roadmap to make the US the global leader in crypto and financial technology (Fintech).
The Working Group recommends that:
- Congress builds on the 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.
With a mission to update bank regulation for digital assets, the Working Group recommends:
- Relaunch crypto innovation efforts to clarify permissible bank activities in custody, tokenization, stablecoin issuance, and blockchain use.
- 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, rather than simply their presence on a distributed ledger.
Other recommendations include:
- Treasury and the banking agencies faithfully and expeditiously implement the GENIUS Act.
- Congress takes 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.
- Treasury and the appropriate regulators provide clarity regarding BSA obligations and reporting.
- Congress reinforces the importance of self-custody and clarifies 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.
- 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 enacts 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 adds digital assets to the list of assets subject to wash sale rules.
There is an expectation that stablecoins will support the dollar’s status as the world’s reserve currency.
SEC Chairman Paul Atkins commented on the objectives, declaring that the Working Group has “developed a blueprint to achieve President Trump’s vision of making America the cryptocurrency capital of the world.”
“The goals that we have outlined are ambitious and essential to meeting the possibilities of this moment. We must unleash the transformative potential of digital asset technology, safeguard our financial stability, and protect investors. In line with this report, I will continue to prioritize the development of forward-thinking and future-proof regulations that foster innovation while mitigating risks.”
He added that he looks forward to working with the Commission, including Commissioner Hester Peirce, who leads the Crypto Task Force, to execute on the stated goals.
