The President’s Working Group releases comprehensive recommendations that could reshape America’s digital asset landscape
The Trump administration moved aggressively Wednesday to position the United States as the global leader in cryptocurrency, releasing a sweeping set of recommendations that would fundamentally reshape how digital assets are regulated, taxed, and integrated into the traditional financial system.
The President’s Working Group on Digital Asset Markets delivered what it calls a “roadmap” to fulfill President Trump’s campaign promise of making America the “crypto capital of the world” — a stark departure from the previous administration’s more cautious approach to digital currencies.
Key Takeaways
Banking barriers removed: Administration ends “Operation Choke Point 2.0” and pushes for banks to offer crypto custody and stablecoin services
Regulatory clarity coming: SEC and CFTC directed to immediately clarify rules for crypto trading, registration, and custody at federal level
Congress gets crypto agenda: Legislation needed to give CFTC oversight of digital asset spot markets and embrace DeFi integration
Dollar-backed stablecoins prioritized: GENIUS Act implementation aims to modernize payments while banning government-issued digital currencies
Tax relief targeted: IRS guidance updates and new asset class treatment could simplify crypto tax compliance for individuals and businesses
Banking Doors Swing Open
Perhaps the most immediate impact will be felt in banking, where the administration claims to have already ended what it terms “Operation Choke Point 2.0” — alleged regulatory efforts that denied banking services to crypto companies.
The working group is pushing for banks to clarify their role in cryptocurrency custody, stablecoin issuance, and blockchain technology usage. More importantly, they want bank capital requirements to reflect actual risks associated with digital assets rather than blanket restrictions simply because they exist on distributed ledgers.
“A sound and predictable banking regulatory framework that embraces the promise of blockchain technology will allow depository institutions to meet customer demand,” the report states, signaling a green light for traditional banks to dive deeper into crypto services.
Congress Gets Marching Orders
The administration is calling on Congress to build momentum from what it describes as a “massive bipartisan House vote” for crypto clarity legislation.
The key asks include giving the Commodity Futures Trading Commission authority over spot markets for non-security digital assets and embracing decentralized finance (DeFi) technology integration into mainstream finance.
This represents a significant shift in regulatory philosophy. Rather than treating crypto as a niche market requiring special restrictions, the framework envisions DeFi protocols becoming part of everyday financial infrastructure.
The Dollar’s Digital Future
Central to the strategy is strengthening the U.S. dollar’s dominance through widespread adoption of dollar-backed stablecoins. The administration points to the recently signed GENIUS Act as creating the first federal regulatory framework for stablecoins, positioning these digital dollars as modernized payment infrastructure.
At the same time, the working group doubles down on opposition to Central Bank Digital Currencies, recommending Congress pass the “Anti-CBDC Surveillance State Act” to codify the president’s executive order banning CBDCs in the United States.
This two-pronged approach — embrace private digital dollars, reject government-issued ones — reflects broader philosophical tensions about monetary policy and financial privacy in the digital age.
Fighting Crime in the Crypto Era
The recommendations acknowledge that digital assets have created new challenges for financial crime prevention. The working group calls for modernizing anti-money laundering rules while protecting citizens from regulatory overreach.
Treasury and other regulators would provide clearer guidance on Bank Secrecy Act obligations and reporting requirements. Congress would clarify how anti-money laundering rules apply to decentralized finance ecosystems while reinforcing the importance of self-custody — the ability for individuals to directly control their digital assets.
Tax Headaches Get Attention
For crypto users frustrated by complex tax obligations, the working group offers hope for relief. The recommendations call for reducing taxpayer burdens through clearer IRS guidance on mining, staking, and various transaction types.
More ambitiously, Congress would be asked to treat digital assets as a new class of assets with modified tax rules, potentially simplifying compliance for both individuals and businesses engaged in crypto activities.
Regulatory Agencies on Notice
The Securities and Exchange Commission and CFTC face immediate pressure to use existing authorities to enable digital asset trading at the federal level. The working group wants regulatory clarity on registration, custody, trading, and recordkeeping — areas where uncertainty has long frustrated market participants.
The agencies are also encouraged to use tools like safe harbors and regulatory sandboxes to allow innovative financial products to reach consumers without “bureaucratic delays.”
What’s at Stake
The recommendations represent the most comprehensive federal embrace of cryptocurrency in U.S. history. Success could indeed position America as the global crypto leader, potentially spurring innovation and economic growth in emerging financial technologies.
However, the ambitious timeline and scope also present significant implementation challenges. Coordinating action across multiple agencies while pushing complex legislation through Congress will test the administration’s ability to deliver on its crypto promises.
For the crypto industry, which has long sought regulatory clarity and traditional financial system integration, the working group’s recommendations offer a roadmap to mainstream adoption.
Whether that roadmap leads to the promised “Golden Age of Crypto” remains to be seen, but the administration has clearly placed its bet on digital assets as a cornerstone of America’s financial future.
Read the White House fact sheet here.
Related Articles: