On July 30, 2025, the Trump administration’s Digital Asset Market Working Group released a report titled Strengthening American Leadership in Digital Financial Technology (hereinafter, the “Report”), outlining the United States’ strategic approach to digital assets and blockchain technology. Spanning 160 pages, the Report presents over 100 policy and legislative recommendations across five key areas: digital asset market structure, banking and digital assets, stablecoins and payments, combating illicit finance, and taxation.

This article is divided into two sections. The first provides an overview of Chapters 1–6 of the Report, while the second offers a Chinese translation of Chapter 7, “Taxation,” to explain the core themes and policy objectives.

Highlights of the Report

First, the Report underscores the need for a clear, technology-neutral regulatory framework to support lawful digital asset activities, marking a significant shift in U.S. digital asset oversight—from “enforcement-driven” to “rules-based” regulation. It emphasizes resolving overlapping functions and jurisdictional conflicts among regulators (such as between the SEC and CFTC), calling for interagency coordination to enhance efficiency and consistency. Through a combination of legislation and executive action, the regulatory landscape is becoming more defined, potentially encouraging market participants who had previously exited the U.S. to re-enter.

Second, the Report is both broad in scope and practical in application. From market structure and banking to stablecoins, illicit finance, and taxation, it provides more than a hundred concrete recommendations to guide policymaking across agencies. Notably, its tax proposals are extensive: it suggests revising wash-sale rules, reforming safe harbor provisions for commodities and securities transactions, and addressing hot-button issues such as the classification of stablecoins, digital asset wrapping technologies, and the corporate alternative minimum tax (CAMT).

Challenges and Limitations

That said, the Report raises several questions. On one hand, it is heavily dependent on legislation, leaving considerable uncertainty in the near term. Specific details—such as the boundaries of interagency oversight or the balance between compliance and privacy—remain to be worked out in practice. On the other hand, some of the proposed solutions appear complex, with their feasibility and enforceability still to be tested.

Takeaways

Ultimately, the Report seeks to build an innovative, transparent, and globally competitive digital asset ecosystem in the United States, presenting a comprehensive blueprint for strengthening American leadership in digital finance. Released in parallel with the newly introduced GENIUS Act, it reflects the Trump administration’s ambition to reinforce the dollar’s central role in global settlement and to steer international capital flows in the digital era. The full impact of these measures, however, will only become clear as they are tested in the diverse realities of digital asset markets.

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Download the summary in PDF (English)

Download the summary in PDF (Chinese)

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