Latest news with #WorkingGroup
Forbes
3 hours ago
- Business
- Forbes
Key Takeaways From The Working Group On Digital Assets Markets Report
As headlines focus on executive orders and sweeping legislation like the GENIUS and CLARITY Acts, a quieter but critical development has emerged: the release of the Working Group's report on U.S. digital asset infrastructure. Commissioned as part of the broader effort to modernize the crypto landscape, this report identifies lingering friction points in the marketplace—from compliance uncertainty to inadequate disclosures. While progress has clearly been made, particularly in stablecoin policy, the report underscores that meaningful hurdles remain. For investors and builders, the message is clear: the foundation is being laid, but the structure is not finished yet. With states, institutions, and various levels of government set to continue allocating billions to crypto and crypto projects the need for clear and concise understanding of the issues facing the space has neve been more important. As the SEC also reiterates support of a crypto master plan, alongside efforts from the White House to make the U.S. the crypto capital of the world, reports and policy pieces such as this are going to be an increasingly important part of these conversations. That said, even though there has been significant progress made across the board, investors and policy advocates alike will need to not only understand but be able to translate into actionable business intelligence able to used by retail and institutional investors. More Legislation Has Been Called For The report does not leave the burden of rule-making to the wide range of entities currently tasked with doing so - it urges Congress to move beyond piecemeal oversight and deliver a comprehensive statutory framework for digital assets. It pushes back against the long-running model of regulation-by-enforcement, arguing that it injects uncertainty into the system and chills innovation. The path forward includes legislation that defines asset classes, assigns regulatory oversight, and clarifies stablecoin, custody, tax, and DeFi rules. For investors, this would mean less legal ambiguity and reduced compliance friction. Until then, stakeholders must continue to navigate a fragmented and fast-evolving regulatory environment. Stablecoins Continue To Lead Policy Discussions Reinforcing what's been echoed in recent Treasury statements and the GENIUS Act, the report makes clear that USD-backed stablecoins remain a centerpiece of U.S. digital asset policy. By tying their development to broader national interests—such as preserving dollar dominance—the government is signaling strong support for regulated, lawful stablecoin ecosystems. For market participants, this could unlock broader institutional use, greater liquidity, and deeper integration into global payment networks. Clearer compliance rules would also enhance issuer credibility and deepen investor trust in the sector. Staking And Mining Taxation Will Be Reviewed Tax policy on staking and mining rewards remains a thorny issue. The report recommends that Treasury and the IRS revisit prior guidance that, in some cases, has triggered tax obligations immediately upon reward issuance—even before sale or realization. A reexamination of this position could pave the way for reforms that better reflect the economic realities of staking and mining. For investors and node operators, especially those in proof-of-stake ecosystems, even modest changes could reshape project economics and help scale blockchain infrastructure in the U.S. Odds of substantive IRS movement on these issues in the short to medium term, especially without Congressional pressure, remains minimal, but reviewing these issues is imperative toward continued institutional investment and adoption. Enhanced Disclosure And Audits Are Coming The vertically integrated model used by many crypto exchanges—simultaneously acting as broker, custodian, and trading venue—has prompted concerns. The report highlights that, unlike their TradFi counterparts, most platforms are not subject to external audits or rigorous disclosure standards. Investors often lack insight into platform solvency, reserve holdings, and order execution practices. In response, the report advocates for updated licensing and disclosure rules designed to expose and mitigate these risks. For users and institutional allocators alike, transparency is no longer optional—it's becoming table stakes. Such findings reinforce the efforts of an array of institutions, including the Wall Street Blockchain Alliance, the Digital Chamber of Commerce, and the AICPA, to issue thought leadership around the important issues of crypto attestation and (eventually) audits. The report's findings arrive at a pivotal moment. Even with rising institutional participation and bipartisan momentum behind crypto legislation, market structure issues continue to evolve. For crypto-native and traditional investors alike, staying ahead of these regulatory developments will be essential as 2025 progresses.
Coin Geek
10 hours ago
- Business
- Coin Geek
White House report fails to add flesh to BTC reserve bones
Getting your Trinity Audio player ready... The White House's long-awaited digital asset report contains a vast smorgasbord of policy proposals, but it played its Strategic Bitcoin Reserve cards extremely close to its chest. On July 30, the White House released a 166-page report prepared by the President's Working Group on Digital Assets. The report followed a January executive order by President Trump to propose 'a Federal regulatory framework governing the issuance and operation of digital assets, including stablecoins.' The stablecoin issue has largely been resolved after Trump signed the GENIUS Act into law earlier this month. However, Trump also asked the Working Group to put some flesh on the bones of his order to establish both a Strategic Bitcoin Reserve and a U.S. Digital Asset Stockpile. And yet the report makes scant mention of either of these crypto treasuries, and there's no mention of them whatsoever in the accompanying fact sheet issued by the White House. The reserve/stockpile was to comprise, respectively, BTC and other tokens already in the government's possession following seizures/forfeitures. Additional BTC were to be added to the reserve if it could be done in a 'budget neutral' way. Based on pre-release comments by Working Group chair David Sacks and deputy Bo Hines, observers expected the report to include budget-neutral addition proposals. Nope. The report states that administration of the reserve/stockpile will be overseen by the Treasury Department and that the two vessels will 'be capitalized by forfeited digital assets.' However, as recent public debates have demonstrated, some of the assets currently in the government's possession belong to the victims of crime, so they're not the government's to keep. Also, while 'the bitcoin in the Reserve will generally not be sold,' some of the digital assets in the government's possession will be used 'to support law enforcement operations, to be equitably shared with state and local law enforcement partners, and to fulfill other statutory forfeiture program requirements.' As for the budget-neutral acquisition of more BTC, the report simply repeats previously issued language regarding the Treasury and Commerce departments being tasked with figuring out ways of stacking more sats without costing taxpayers a dime. But if Treasury/Commerce has any ideas on this score, they aren't talking about them. Hines spoke to Fox Business following the report's release, but wasn't pressed on the reserve/stockpile issue and didn't volunteer any specifics. Hines wasn't much more forthcoming in a conversation with the Crypto in America podcast, claiming that much work remained to 'build the infrastructure' of the reserve/stockpile. Other than that, Hines simply repeated previous statements to the effect that 'we do believe in accumulation, obviously in budget-neutral ways.' Asked directly 'how much Bitcoin does the government have,' Hines declined to even give a 'ballpark' figure. Hines cited 'several reasons' why the government wasn't disclosing this data, while allowing 'there might be a time that we do.' Other recommendations As for the lengthy report's other recommendations, a full table starts on page 141, but here are some broad strokes. The digital asset market structure bills currently before Congress aim to carve out clear lanes for the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC). The report says the SEC and CFTC should 'use their existing authorities to immediately enable the trading of digital assets at the federal level,' but the CFTC should be given 'clear authority to regulate spot markets in non-security digital assets.' Many of the report's SEC recommendations—allowing unregistered token sales by projects not yet deemed 'mature'; an 'innovation exemption'; safe harbor for certain types of airdrops, etc.—mirror elements in the House of Representatives' market structure bill (CLARITY Act), which was approved earlier this month. The CFTC is urged to consider amending its rules 'to enable the use of blockchain-based derivatives' and to give guidance to prediction markets like Kalshi and Polymarket 'regarding the listing of leveraged, margined, or financed spot retail commodity transactions on digital assets.' The SEC and CFTC are both urged to consider 'more vertically integrated business models' by allowing registrants to 'offer multiple services within a single user interface.' For example, 'combining exchange services with custody of trading assets allows for real-time settlement.' While federal banking regulators have largely backed off the restrictive policies that so annoyed the crypto sector under the Biden administration, the report says regulators should 'never again' pursue policies that result in the alleged 'debanking' of crypto operators during Operation Choke Point 2.0. Instead, regulators are urged to 'embrace the opportunities digital assets and blockchain technologies offer to banks nationwide.' Similarly, federal banking regulators 'should provide clarity and transparency' regarding the process of obtaining a national bank charter and/or a Federal Reserve Bank master account. As for stablecoins, while the GENIUS Act is now law of the land, the report says 'all agencies to which Congress delegated responsibilities under the GENIUS Act should faithfully and expeditiously execute those responsibilities.' Agencies should also 'promote U.S. private sector leadership in the responsible development of cross-border payments and financial markets technologies.' Interestingly, the report notes that the benefits of stablecoin issuers holding a U.S. permit are 'modest,' suggesting claims of a supposed rush by foreign issuers to 'onshore' themselves may be overblown. As for central bank digital currencies (CBDCs), it should come as no surprise that the report suggests that they should be cast into the fiery pits of hell, and any country that issues a CBDC should be hit with 9,000,000% tariffs. In terms of combatting illicit finance, the Treasury Department's Financial Crimes Enforcement Network (FinCEN) is urged to evaluate how its digital asset guidance should be 'rescinded, modified or updated to reflect legislative and regulatory changes.' Congress is urged to 'consider creating a bespoke digital asset-specific financial institution types or sub-types, which could enable Treasury to more carefully tailor [anti-money laundering/countering the financing of terrorism] obligations to different participants in the digital asset industry.' Under a header reading 'Enabling Private Sector Investigations,' the report suggests Congress enact 'a digital asset-specific 'hold law' that offers a safe harbor to institutions that temporarily and voluntarily hold property involved in suspected illegal activity during a short duration investigation.' Examples of these institutions include exchanges and stablecoin issuers. And while it often appears that the Trump administration has no interest in pursuing crypto crooks, the report wants Congress to apply the Bank Secrecy Act's weight against 'foreign-located actors' should they engage in conduct that negatively impacts the U.S. Finally, on taxation, Congress is urged to create 'a new class of assets subject to modified versions of tax rules applicable to securities or commodities.' Taxpayers could also be required to report 'foreign digital asset accounts' to eliminate taxpayers' ability to 'conceal assets and taxable income by using offshore digital asset exchanges and wallet providers.' Congress is also urged to include digital assets in the rules regarding wash sales. Sen. Cynthia Lummis (R-WY) recently introduced a bill that would do just that, seeking to close the loophole that allows crypto traders to deduct income losses from wash trading tokens. Back to the top ↑ Coin mixers in the legal crosshairs The report wants Congress to 'codify principles regarding how control over an asset impacts Bank Secrecy Act (BSA) obligations, particularly for money transmitters. A software provider that does not maintain total independent control over value should not be considered as engaged in money transmission for purposes of the BSA.' This language addresses decentralized finance (DeFi) platforms, including coin mixing services like Tornado Cash. Speaking of, the trial of Tornado Cash co-founder Roman Storm is now in the hands of a jury, after both the prosecution and defense made their closing arguments on July 30 following two weeks of testimony. In August 2023, the Department of Justice (DOJ) charged Storm with conspiracy to commit money laundering, operating an illegal money transmitting business, and facilitating sanctions violations, leaving him facing up to 45 years in prison if convicted on all counts. Storm chose not to take the stand in his own defense, although he made a public appeal for another $1.5 million in donations to help cover his legal fees as the trial headed into its final week. Storm's defense centered mainly on the hands-off nature of Tornado Cash's developers, something the White House now appears intent on addressing. A similar defense was being prepared in the case of Keonne Rodriguez and William Lonergan Hill, co-founders of rival mixer Samourai Wallet, until they reached a last-minute deal with federal prosecutors this week. In April 2024, Rodriguez and Hill were arrested and charged with conspiracy to commit money laundering and conspiracy to operate an unlicensed money-transmitting business. Facing up to 25 years in prison, Rodriguez and Hill agreed this week to plead guilty to the money transmitting charge, in exchange for which the money laundering charge will be dropped. U.S. District Judge Denise Cote accepted the pleas. The defendants will be sentenced on November 7, and the pair has reportedly agreed not to appeal any prison sentence under five years. The pair has also agreed to forfeit $237 million (although only $6.4 million is to be paid pre-sentencing) and pay a fine of $400,000. Unlike Storm, who tended to play down Tornado Cash's role in laundering the proceeds of crime, the Samourai bros openly celebrated their roles, even publicly taunting European Union (EU) law enforcement agency Europol and promoting their service's ability to help Russian oligarchs evade economic sanctions. On Wednesday, Hill told Judge Cote that he 'understood that the proceeds of hacks of various sites could be sent through the code base of Samourai Wallet to obscure their origin.' Back to the top ↑ Coinbase, a16z, not making friends on Capitol Hill The Hill's coverage of the report featured a quote from a White House official that 'the [crypto] industry will be extremely pleased with us.' That apparently isn't always the case, as a new Wired report claims the industry fought the White House over how it wanted Congress to proceed in passing digital asset legislation… and the White House won. In June, the House and Senate were at loggerheads over how to proceed with the crypto bills in their respective chambers. House leadership wanted to combine stablecoin and market structure bills into a single piece of legislation, while the Senate wanted to get a stablecoin bill onto Trump's desk ASAP and do market structure later. Trump supported the latter strategy. Wired's sources claim the Coinbase (NASDAQ: COIN) digital asset exchange and the Andreessen Horowitz (a16z) (NASDAQ: ZADIHX) venture capital group had pressed Republicans to combine the House's market structure bill (CLARITY) with the Senate's stablecoin bill (GENIUS). Coinbase and a16z are among the largest contributors to the Fairshake political action committee that spent $135 million in the 2024 election cycle. Fairshake recently let it be known that it has amassed a $140 million war chest to spend ahead of the 2026 midterm elections and that it was watching closely how pols voted on the crypto bills. Apparently convinced that they now ran the government when it came to crypto matters, a 'senior administration official' told Wired that the two companies 'were being hissy pissy about the way to do things' and 'we said 'you're just fuckin' wrong.'' Coinbase was singled out by a different Republican operative as making enemies within the House GOP caucus by trying to 'throw [their] weight around.' This source claimed, 'at the end of the day [Coinbase] wasted two weeks of the legislative calendar by slowing everything down.' Coinbase's efforts to make nice with crypto-friendly Democrats in addition to Republicans also didn't sit well within GOP circles. The senior official added that crypto operators 'need to understand that if they stick with us they have a good chance of success—rowing against us will almost guarantee failure […] if [Democrats] take power again, you're not getting shit.' Back to the top ↑ Did Winklevii stab CFTC nominee Quintenz in the back? Speaking of crypto operators behaving badly, Politico reported Wednesday that Cameron and Tyler Winklevoss, co-founders of the Gemini exchange, were behind the White House's as-yet-unexplained decision to ask the Senate Agriculture Committee to cancel a confirmation hearing for Brian Quintenz, Trump's nominee for CFTC chairman. Given that this was the second cancellation in as many weeks, speculation had it that Quintenz's seat on the board of the CFTC-registered Kalshi might have raised some conflict of interest concerns. But Politico reported that the Winklevii had other reasons for calling Trump over the weekend to advise against keeping Quintenz as the nominee. Despite both Cameron and Tyler praising Trump's nomination of Quintenz when it was announced in February, the brothers reportedly told Trump that Quintenz was the wrong choice because he wouldn't 'shake up the CFTC enough.' A second source claimed the Winklevii told Trump that Quintenz was 'not aligned with Trump's agenda.' To support this assertion, the brothers reportedly pointed to Quintenz's testimony at an Ag Committee hearing in June in which he said he supported increasing the CFTC's budget (which is heresy in the DOGE cost-cutting era). Quintenz's budget comments reflect the fact that the CFTC is now expected to handle the bulk of digital asset oversight, despite its annual budget being less than one-fifth of the SEC's. The fact that the Winklevii found this to be a dealbreaker suggests the brothers might have other concerns they chose not to tell Trump about. A White House spokesperson told Politico that Quintenz 'remains President Trump's nominee' and the administration was looking forward to his 'swift confirmation.' Neither the Winklevii nor Quintenz have yet to address the report. Back to the top ↑ Kraken raising cash The Kraken digital asset exchange is second only to Coinbase among U.S. exchanges in trading volume, but Kraken has yet to follow Coinbase's lead by going public. That could change early next year, but there's apparently never a bad time to raise additional cash while pimping your surging revenue. On July 29, The Information reported that Kraken was looking to raise $500 million at a valuation of $15 billion. That valuation is a significant increase on the $10 billion sticker price the exchange gave itself in 2021 (and 2018's $4 billion valuation). Separately, Kraken co-CEO Arjun Sethi told Bloomberg that the exchange generated $412 million in 'gross revenue' in the three months ending June 30, an 18% improvement from the same period last year. Adjusted earnings (what Charlie Munger used to call 'bullshit earnings') totaled $79.7 million, down 7% year-on-year and less than half of Q1's $187.4 million. Kraken blamed the earnings decline on rising expenses from new product launches—like the new Krak app and tokenized equities outside America—and geographical expansion in markets including the EU and Brazil. Sethi said Kraken's Q2 trading volume hit nearly $187 billion, nearly one-fifth better than the same period last year. The number of funded accounts jumped 37% to 4.4 million, while total assets on the platform surged 46.4% to $43.2 billion (partly due to significant gains in the fiat value of digital assets, something beyond Kraken's control). Sethi took a dig at Kraken's rivals by saying the figures showed Kraken was 'gaining share across the board.' But when asked for updates on the timing of Kraken's IPO, Sethi demurred, saying only that 'when we think it's the right time for us to go, we'll go.' Back to the top ↑ Watch: Teranode is the digital backbone of Bitcoin title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen="">
India Today
a day ago
- Business
- India Today
White House releases roadmap to make US the ‘crypto capital of the world'
The White House unveiled sweeping recommendations from the President's Working Group on Digital Asset Markets, outlining an ambitious strategy to solidify the United States' leadership in blockchain and digital financial report stems from Executive Order 14178, signed by President Trump earlier this year, which directed federal agencies to align policy, regulation, and innovation with his pledge to make America the 'crypto capital of the world.'advertisement'By implementing these recommendations, policymakers can ensure that the United States leads the blockchain revolution and ushers in the Golden Age of Crypto,' the Working Group said in its report. The group — composed of officials across federal regulatory agencies — recommends a mix of legislative and executive actions, including clarity on regulatory oversight, expanded crypto banking access, a robust framework for stablecoins, and modernized tax and anti-money laundering RECOMMENDATIONS:1. Regulatory Clarity and InnovationThe Working Group calls on Congress to act on bipartisan momentum behind the CLARITY Act by granting the Commodity Futures Trading Commission (CFTC) the authority to oversee non-security digital asset spot markets. It also urges regulators to embrace DeFi and allow new financial products through tools like safe harbors and regulatory sandboxes.'A fit-for-purpose market structure framework is essential to support growth and innovation,' the report states.2. Crypto-Friendly Banking ReformsAfter ending "Operation Choke Point 2.0," the Trump administration now wants clear banking rules for custody, stablecoin issuance, and blockchain use. The group stresses aligning capital requirements with real risks, not just the 'fact of their presence on a distributed ledger.'3. The GENIUS Act and StablecoinsWith the recent signing of the GENIUS Act, America has enacted its first federal stablecoin framework. The group calls for swift implementation and proposes the Anti-CBDC Surveillance State Act, which would codify Trump's executive order banning Central Bank Digital Currencies.'The widespread adoption of dollar-backed stablecoins will modernize payments infrastructure,' the report adds.4. Combating Illicit Finance Without OverreachThe group seeks modern AML rules that protect national security without infringing on self-custody rights or targeting law-abiding citizens.5. Digital Asset Tax ReformsThe IRS and Treasury are advised to reduce red tape, clarify rules around mining, staking, and de minimis receipts, and adjust tax codes to treat digital assets as a distinct asset class — subject to modified securities and commodity rules.- EndsMust Watch
Yahoo
a day ago
- Business
- Yahoo
Trump's crypto policy report misses one key promise
Trump's crypto policy report misses one key promise originally appeared on TheStreet. A new White House study on digital assets makes no mention of President Donald Trump's long-promised strategic crypto reserve in the U.S., as per the latest Bloomberg news report. The report's factsheet, set to release on July 30, calls for regulators to clarify crypto trading regulations and proposes a new law that would give the Commodity Futures Trading Commission (CFTC) authority over spot markets, with the goal of propelling a "Golden Age of Crypto." The Working Group on Digital Asset Markets has worked on the much-awaited report. Trump signed an executive order in January, asking the Working Group to submit the report to the President within 180 days. Though building a Strategic Bitcoin Reserve was a significant aspect of Trump's 2024 presidential campaign, the new report focuses more on rules and innovative ideas. The organization wants Congress to enact the Digital Asset Market Clarity Act to remove legal gaps and give the CFTC control over digital assets that aren't securities, like Bitcoin. It also asks authorities to utilize their existing power to make it easier for people to trade cryptocurrencies at the federal level by clarifying how processes such as registration, custody, and trading should report calls for faster approval of new crypto products, clearer guidelines for how banks may use stablecoins, and easier ways for firms to gain bank licenses. The report also recommends that Congress enact legislation that "treats digital assets as a new class of assets subject to modified versions of tax rules applicable to securities or commodities" for federal tax purposes. It also urges Congress to address tax loopholes like wash sales and provide the IRS with clear standards on how to handle crypto and corporate taxes. Trump's crypto policy report misses one key promise first appeared on TheStreet on Jul 30, 2025 This story was originally reported by TheStreet on Jul 30, 2025, where it first appeared. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
2 days ago
- Business
- Bloomberg
Trump Crypto Group Unveils Proposals to Boost Digital Finance
A group charged by President Donald Trump with recommending policies on crypto markets called on federal regulators to use their authority to provide more clear rules on the trading of digital assets and ease the adoption of new financial products in a report released on Wednesday. 'By implementing these recommendations, policymakers can ensure that the United States leads the blockchain revolution and ushers in the Golden Age of Crypto,' the White House said in a fact sheet on the report from the Working Group on Digital Asset Markets.
