Report: President's Advisory Group Outlines Strategies for Solidifying U.S. Dominance in Digital Financial Technology Sector
The President's Working Group on Digital Asset Markets, established by Executive Order 14178 under President Trump, has released a comprehensive report on July 30, 2025, outlining key recommendations to position the United States as a global leader in digital asset markets.
The report, which consists of officials throughout the Federal government, provides a roadmap to make the United States the "crypto capital of the world." The main recommendations include:
- Establishing a clear regulatory framework and taxonomy for digital assets: The report calls for clarifying definitions and regulatory oversight responsibilities among federal agencies to reduce fragmentation and uncertainty.
- Enhancing market structure by improving transparency, registration, custody, trading, and recordkeeping requirements: The Working Group recommends these improvements to foster innovation without bureaucratic delays.
- Modernizing anti-money laundering (AML) and countering the financing of terrorism (CFT) regulations: The Working Group emphasizes the need to mitigate illicit finance risks and improve national security protections.
- Promoting coordination and collaboration across federal agencies, financial institutions, and private sector stakeholders: The Working Group stresses the importance of ensuring the secure, compliant, and transparent development of crypto infrastructure.
- Encouraging Congress to enact legislation that embraces decentralized finance (DeFi) technology and integrates blockchain innovation into mainstream finance: The report highlights the need for Congress to build on the massive bipartisan House of Representatives vote for CLARITY by enacting legislation that eliminates existing gaps in regulatory oversight and embraces DeFi technology.
- Recommending Congress to take additional action to protect privacy and civil liberties by passing the Anti-CBDC Surveillance State Act: The Working Group urges Congress to reinforce the importance of self-custody and clarify the AML/CFT obligations of actors within the decentralized finance ecosystem.
- Recommending regulators to prevent the misuse of authorities to target lawful activities of law-abiding citizens and protect citizens' privacy: The Working Group emphasizes the need for regulators to work towards this goal.
- Recommending Treasury and the IRS to review previously issued guidance on the tax treatment of activities like mining and staking: The Working Group also recommends these entities to reduce burdens on taxpayers by publishing guidance on topics related to CAMT, wrapping transactions, and de minimis receipts of digital assets.
- Recommending digital assets to be added to the list of assets subject to wash sale rules: The Working Group suggests this measure to ensure fairness in the market.
- Recommending the SEC and CFTC to use their existing authorities to immediately enable the trading of digital assets at the Federal level and allow innovative financial products to reach consumers without bureaucratic delays: The Working Group urges these bodies to take immediate action.
The report emphasizes that digital assets are a central pillar for the future U.S. financial system and stresses urgent, coordinated federal action to balance innovation with market safety and integrity. It also highlights the importance of public-private partnership to usher in a so-called "golden age" of crypto in the U.S. [1][2][3][4]
The Working Group also recommends strengthening the role of the US dollar by supporting the widespread adoption of dollar-backed stablecoins to modernize payments infrastructure. Additionally, the Group recommends modernizing bank regulation for digital assets to allow depository institutions to meet customer demand for core banking services for digital assets. Lastly, the Group recommends regulators take additional actions to relaunch crypto innovation efforts, promote transparency regarding the process for institutions to obtain bank charters or Reserve Bank master accounts, and ensure that bank capital rules are aligned with the actual risks associated with digital assets. [5][6][7][8][9][10]
- The report suggests encouraging Congress to enact legislation that embraces decentralized finance (DeFi) technology and integrates blockchain innovation into mainstream finance, which involves significant investing in the technology sector to drive business growth.
- To foster innovation and ensure transparency in the digital asset markets, the report recommends modernizing anti-money laundering (AML) and countering the financing of terrorism (CFT) regulations, which has implications for finance and technology sectors.
- The Working Group urges Congress to reinforce the importance of self-custody and clarify the AML/CFT obligations of actors within the decentralized finance ecosystem, highlighting the need for a collaborative approach between finance, technology, and policy-making bodies.
