On July 30, 2025, the White House released a significant report from the President’s Working Group on Digital Asset Markets. Stemming from Executive Order 14178, the recommendations offer a comprehensive policy roadmap aimed at establishing the United States as a leader in blockchain and digital finance. The report addresses longstanding regulatory uncertainty, proposes updates to banking and tax rules, and reaffirms the role of stablecoins in modernizing the financial system.

Elevating the U.S. Role in Crypto Innovation

Central to the report is a call for a “fit for purpose” market structure that fosters innovation while protecting consumers and maintaining financial integrity. The Working Group recommends several foundational reforms:

• • Expanding the Commodity Futures Trading Commission’s authority to cover spot markets for non-security digital assets.
  • Encouraging the integration of decentralized finance (DeFi) into traditional financial services.
  • Promoting regulatory clarity through mechanisms such as safe harbors and regulatory sandboxes.

These proposals aim to fill regulatory gaps and provide the legal certainty needed for responsible innovation to thrive in the United States.

Enabling Banks to Participate in Blockchain Innovation

The report also addresses outdated banking policies that have created barriers for institutions seeking to participate in blockchain services. Among the proposed updates:

• • Clarify which digital asset services banks can legally provide, including custody, token issuance, and stablecoin services.
  • Create a transparent and consistent process for banks to obtain charters and Federal Reserve master accounts.
  • Align capital requirements with the actual risk profile of blockchain-based assets.

These reforms are intended to create a clear path for banks to safely engage in digital asset markets.

Stablecoin Regulation & U.S. Dollar Leadership

In the wake of the recently passed GENIUS Act, the Working Group emphasizes the importance of establishing stablecoins as secure, regulated financial tools. Key actions include:

• • Direct Treasury and relevant regulators to implement the GENIUS Act without delay.
  • Pass the Anti-CBDC Surveillance State Act, which would prohibit the issuance of a U.S. central bank digital currency and preserve financial privacy.

These proposals aim to modernize payment systems while maintaining the primacy of the U.S. dollar.

AML/CFT Clarity & Civil Liberties Protections

The Working Group recognizes the need to strengthen anti-money laundering policies while protecting civil liberties. The report outlines three priorities:

• • Issue clearer guidance under the Bank Secrecy Act that is tailored to digital assets.
  • Clarify legislative expectations for AML compliance in decentralized finance and self-custody contexts.
  • Safeguard lawful activity from regulatory overreach or selective enforcement.

This approach attempts to balance security with the foundational principles of financial freedom and individual privacy.

Updating Crypto Tax Policy for the Modern Era

Current tax rules often leave digital asset holders uncertain and exposed. The working group proposes targeted reforms to address this challenge:

• • Instruct the Treasury and IRS to issue updated guidance covering token wrapping, staking, mining, de minimis exemptions, and the Corporate Alternative Minimum Tax (CAMT).
  • Recommend that Congress create a distinct asset classification for digital assets and evaluate revisions to wash-sale and capital gains rules.

These steps would help reduce compliance burdens while encouraging broader adoption of blockchain technologies.

Conclusion

The President’s Working Group on Digital Asset Markets has delivered a detailed framework that addresses nearly every major friction point in U.S. crypto policy. The proposals span market structure, banking participation, stablecoin integration, privacy protections, and tax modernization. Together, they form a clear and actionable blueprint for responsible growth in digital finance.

Although these recommendations do not carry the weight of law, they reflect a meaningful shift toward a regulatory environment that supports innovation. If acted upon, this framework could mark the beginning of what many are calling the “Golden Age of Crypto.”

Disclosures: This article is for informational purposes only and should not be considered financial, legal, tax, or investment advice. It provides general information on cryptocurrency without accounting for individual circumstances. Sarson Funds, Inc. does not offer legal, tax, or accounting advice. Readers should consult qualified professionals before making any financial decisions. Cryptocurrency investments are volatile and carry significant risk, including potential loss of principal. Past performance is not indicative of future results. The views expressed are those of the author and do not necessarily reflect those of Sarson Funds, Inc. By using this information, you agree that Sarson Funds, Inc. is not liable for any losses or damages resulting from its use.