The President’s Working Group on Digital Asset Markets released a report that outlines a comprehensive framework to establish the United States as a global leader in digital financial technology.

The report follows through on President Trump’s January commitment to make America the “crypto capital of the world”, as outlined in Executive Order 14178, Strengthening American Leadership in Digital Financial Technology.

The Working Group, comprising officials across the Federal government, was tasked with recommending regulatory and legislative measures to support the policies introduced in the Executive Order.

The report sets out a roadmap for strengthening the country’s position in the digital asset sector while addressing issues related to consumer protection, market integrity, innovation, and national security.

In its findings, the Working Group emphasised the need for a fit-for-purpose market structure to promote innovation and ensure regulatory clarity.

It recommends that Congress build on the recent bipartisan momentum behind the CLARITY Act by adopting legislation that closes oversight gaps, specifically by granting the Commodity Futures Trading Commission (CFTC) authority to supervise spot markets for non-security digital assets.

It also calls for the integration of decentralised finance (DeFi) technologies into traditional financial systems.

The report further encourages the Securities and Exchange Commission (SEC) and the CFTC to use their existing authorities to immediately clarify requirements around registration, custody, trading, and recordkeeping.

It recommends the use of regulatory tools such as safe harbours and sandboxes to allow innovative products to reach the market without unnecessary delays.

In the area of banking regulation, the Administration has taken steps to end practices that restrict access to financial services for digital asset firms.

The report recommends renewed efforts to clarify permissible banking activities, including custody, tokenisation, stablecoin issuance, and blockchain applications.

It also stresses the need for improved transparency around the process of obtaining bank charters and Reserve Bank master accounts.

Regulators are encouraged to align capital requirements with the actual risk profile of digital assets.

President Trump recently signed into law the GENIUS Act, which establishes the first Federal regulatory framework for stablecoins.

The report urges Treasury and banking regulators to implement this law expeditiously and recommends additional legislative steps to protect privacy by codifying the President’s Executive Order prohibiting the issuance of a US central bank digital currency.

On the subject of financial crime, the Working Group calls for modernised anti-money laundering (AML) rules that clarify Bank Secrecy Act obligations and reporting requirements.

It also recommends legislative measures to support the role of self-custody and define the compliance expectations for DeFi participants, while cautioning against the misuse of enforcement powers to target lawful activities.

To address taxation challenges, the report recommends that Treasury and the Internal Revenue Service publish guidance on issues such as the Corporate Alternative Minimum Tax (CAMT), wrapped transactions, and small-value receipts.

It also calls for a review of previous guidance on mining and staking, and proposes legislation to classify digital assets as a distinct asset class under modified tax rules, including their inclusion under wash sale provisions.

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