Ted Hisokawa
Aug 01, 2025 13:07
The President’s Working Group (PWG) has released a comprehensive report outlining new regulatory frameworks for digital assets, highlighting the need for enhanced public-private collaboration.
The U.S. government is taking significant steps towards establishing a comprehensive regulatory framework for digital assets, according to a report by the President’s Working Group (PWG) on Digital Asset Markets, released on July 30, 2025. The report is part of a broader initiative under Executive Order 14178, aimed at integrating digital assets into the traditional financial system.
Key Recommendations for Market Structure
The PWG report emphasizes the necessity of a clear framework for digital asset market structure. It suggests Congress should define a taxonomy of tokens and delineate the roles of regulatory bodies such as the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC). The report also advocates for the implementation of the CLARITY Act and the establishment of reporting, disclosure, and cybersecurity standards for market intermediaries.
Banking Access and Tokenization
The report outlines measures to facilitate banks’ engagement with crypto activities. It calls for transparency in regulatory permissibility and supervisory expectations, enabling digital asset firms to secure banking charters and Federal Reserve master accounts. The PWG also recommends non-punitive capital rules for banks’ digital asset exposures, promoting a safer and more accessible financial ecosystem.
Stablecoins and Payments Integration
Stablecoins are highlighted as a promising technology for reducing transaction costs and reinforcing U.S. leadership in global finance. The report advises swift action on the GENIUS Act and the formulation of AML/CFT rules for stablecoin issuers. It warns against the risks of alternative payment systems that could undermine U.S. economic and national security.
Enhancing AML/CFT Measures
The modernizing of AML/CFT regulations is a central theme in the report, which calls for clear definitions of Bank Secrecy Act obligations for digital asset entities. It advocates for frameworks addressing high-risk activities and asset freezing, particularly for DeFi protocols, and stresses the need for improved compliance tools and training to enhance supervisory capabilities.
Tax Compliance and Collaboration
The report proposes new IRS guidelines for staking, mining, and other crypto activities, emphasizing collaboration with industry stakeholders to develop practical and enforceable tax rules. This approach aims to ensure that digital asset activities are accurately reported and taxed.
For further insights, the full report can be accessed on the Chainalysis website.
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