The report is the outcome of President Trump’s executive order to establish a “working group” for developing a regulatory framework for digital assets.
The US President’s Working Group on Digital Asset Markets has issued a report titled “Strengthening American Leadership in Digital Financial Technology”, which highlights policy preferences for the digital assets industry.
The report was created after US President Donald Trump issued an executive order to establish a “working group” focused on creating a regulatory framework for digital assets in January 2025. The Working Group, as the author of this report, endorses the notion that digital assets and blockchain technologies can revolutionise the American financial system as well as the systems of ownership and governance economy-wide.
This report supports cryptocurrency growth, calling it a “hallmark of the new American Golden Age,” and offers recommendations to Treasury, the IRS, and Congress to address tax compliance challenges for individuals and businesses.
The report highlights key tax and accounting considerations for digital assets, including:
- Applying the corporate alternative minimum tax to digital assets.
- Defining the tax status of investment trusts holding digital assets.
- Recommending that FASB adopt accounting rules tailored to digital assets’ unique traits.
- Proposing legislation to classify digital assets as a distinct asset class under the “wash sale” rule, with exceptions for stablecoins (treated as cash equivalents) and minor losses.
- Clarifying whether “wrapping and unwrapping” digital assets across blockchains are taxable events.
The Report highlights the White House’s stance on regulatory responsibilities in the digital assets industry, assigning the SEC oversight of digital asset securities and the CFTC authority over the spot digital assets market for non-securities. It concludes with insights on the Bitcoin Strategic Reserve.
