Fact Sheet: The President’s Working Group on Digital Asset Markets Releases Recommendations to Strengthen American Leadership in Digital Financial Technology

7/30/2025

Fact Sheets

View Original

Action Summary

Establishing U.S. Leadership in Crypto: The Working Group, established under Executive Order 14178, outlines a roadmap to make America the “crypto capital of the world” by bolstering digital asset markets.
Regulatory Framework and Oversight:
- Recommends Congress enact legislation to eliminate gaps in regulatory oversight, including granting the CFTC authority over spot markets for non-security digital assets.
- Encourages embracing DeFi technology and integrating it with mainstream finance.
Role of SEC and CFTC:
- Calls for immediate clarification on registration, custody, trading, and recordkeeping requirements to facilitate digital asset trading at the federal level.
- Supports the use of safe harbors and regulatory sandboxes to expedite innovative financial products.
Modernizing Bank Regulation:
- Builds on the termination of Operation Choke Point 2.0 by redefining permissible banking activities related to digital assets, including custody, tokenization, and stablecoin issuance.
- Promotes improvements in transparency for obtaining bank charters or Reserve Bank master accounts and advocates for risk-aligned bank capital rules.
Strengthening the U.S. Dollar:
- Highlights the historic GENIUS Act, which establishes a federal regulatory framework for dollar-backed stablecoins.
- Recommends expeditious implementation by Treasury and banking agencies and calls for additional legislative safeguards via the Anti-CBDC Surveillance State Act.
Combating Illicit Finance:
- Advocates modernization of anti-money laundering rules to support financial innovation while protecting national security.
- Recommends clarity on BSA obligations, reinforcement of self-custody, and protection of privacy rights in decentralized finance.
Digital Asset Taxation:
- Calls for Treasury and the IRS to provide guidance to ease taxpayer burdens related to digital asset transactions including CAMT, wrapping transactions, and de minimis receipts.
- Proposes legislative action to classify digital assets under modified tax rules akin to securities or commodities, and to include them under wash sale rules.

Risks & Considerations

The Executive Order and subsequent recommendations aim to position the United States as a leader in digital asset markets, which could lead to significant regulatory changes. Vanderbilt University may need to consider how these changes could impact its financial operations, particularly if it holds or plans to hold digital assets.
The emphasis on modernizing bank regulation for digital assets could affect the university’s banking relationships and financial transactions, especially if it engages in activities involving digital currencies or blockchain technology.
The focus on combating illicit finance and ensuring fairness in digital asset taxation may require Vanderbilt to review its compliance and reporting practices related to digital assets, potentially increasing administrative burdens.
Vanderbilt’s research programs, particularly those related to finance, technology, and law, may see increased demand for expertise in digital asset regulation and innovation, presenting opportunities for collaboration with federal agencies and industry partners.

Impacted Programs

Owen Graduate School of Management may need to adapt its curriculum to include more content on digital asset markets and blockchain technology, preparing students for careers in this rapidly evolving field.
Vanderbilt Law School could see increased interest in courses related to digital asset regulation and financial technology law, as legal frameworks for these areas continue to develop.
The Department of Computer Science may have opportunities to expand research and development in blockchain technology and its applications, potentially attracting new funding and partnerships.
Vanderbilt’s Office of Investments might need to evaluate its investment strategies and policies regarding digital assets, considering the potential risks and opportunities presented by the evolving regulatory landscape.

Financial Impact

The potential for new federal regulations and tax rules related to digital assets could impact Vanderbilt’s financial planning and investment strategies, necessitating adjustments to ensure compliance and optimize returns.
Opportunities for securing research funding in digital asset technology and regulation may increase, particularly if federal agencies prioritize innovation and leadership in this area.
Changes in banking regulations could affect the university’s access to financial services and its ability to engage in digital asset transactions, potentially influencing its financial operations and partnerships.
The emphasis on modernizing payments infrastructure and promoting stablecoins could lead to cost savings and efficiencies in financial transactions, benefiting the university’s financial management.

Relevance Score: 4 (The order presents a need for potential major changes or transformations of programs.)

Key Actions

Vanderbilt’s Financial and Legal Departments should closely monitor the evolving regulatory landscape for digital assets, particularly the recommendations for Congress to enact legislation that provides the CFTC authority over non-security digital assets. This will be crucial for understanding potential impacts on financial operations and compliance requirements.
The Owen Graduate School of Management should explore opportunities to integrate blockchain and digital asset management into its curriculum. By aligning with the national focus on digital financial technology, the school can enhance its offerings and attract students interested in emerging financial markets.
Vanderbilt’s Research Centers should consider conducting studies on the implications of digital asset market regulations and the integration of DeFi technology into mainstream finance. This research can position Vanderbilt as a thought leader in the field and provide valuable insights to policymakers and industry leaders.
The Office of Federal Relations should engage with policymakers to understand the potential impacts of the GENIUS Act and other legislative actions on the university’s financial and operational strategies. This engagement can help Vanderbilt anticipate changes and adapt accordingly.
Vanderbilt’s IT and Cybersecurity Teams should assess the potential risks and opportunities associated with the widespread adoption of blockchain technology and dollar-backed stablecoins. Ensuring robust cybersecurity measures will be essential to protect the university’s digital infrastructure.

Opportunities

The executive order presents an opportunity for Vanderbilt’s Law School to develop specialized programs or courses focused on digital asset regulation and compliance. By leveraging its expertise in legal education, the Law School can contribute to the training of future legal professionals in this rapidly evolving field.
Vanderbilt can capitalize on the increased focus on digital financial technology by establishing partnerships with industry leaders and government agencies. These collaborations could include joint research initiatives, internships, and knowledge exchange programs, enhancing Vanderbilt’s reputation and influence in the digital asset sector.
The emphasis on modernizing anti-money laundering rules offers an opportunity for Vanderbilt’s Public Policy Studies to engage in policy analysis and advocacy. By providing evidence-based recommendations, the program can influence how these rules are implemented to balance innovation with national security interests.
By engaging with the broader financial and regulatory community, Vanderbilt can position itself as a leader in the national conversation on digital asset markets. Hosting conferences, workshops, and public forums on the implications of digital asset regulations can further establish Vanderbilt as a hub for innovative financial thought and practice.

Relevance Score: 4 (The order presents the potential for major process changes required for Vanderbilt’s programs due to impacts on financial operations and educational offerings.)

Average Relevance Score: 3.2

Timeline for Implementation

N/A. The summary does not specify any definitive numeric deadlines or dates for the directives, only qualitative terms like “immediately” and “expeditiously.”

Relevance Score: 1

Impacted Government Organizations

Commodity Futures Trading Commission (CFTC): Tasked with overseeing spot markets for non-security digital assets and providing regulatory clarity on digital asset trading.
Securities and Exchange Commission (SEC): Involved in issuing guidance and utilizing existing authorities to enable and regulate the trading of digital assets.
U.S. Department of the Treasury: Central to implementing the GENIUS Act, modernizing banking regulations for digital assets, and providing oversight on digital asset taxation.
Internal Revenue Service (IRS): Engaged in reducing taxpayer burdens by issuing clear guidelines regarding digital asset transactions and tax treatments.
Banking Regulators/Agencies: Including agencies involved in banking charters, oversight of bank capitalization rules, and the integration of blockchain technology into core banking services.
United States Congress: Expected to enact legislation clarifying digital asset oversight, sponsoring bills such as CLARITY, and addressing issues from stablecoin regulation to digital asset taxation.

Relevance Score: 3 (6-10 agencies are impacted, demonstrating a moderately broad scope across multiple key federal regulators and legislative bodies.)

Responsible Officials

Congress – Tasked with enacting legislation to address gaps in regulatory oversight, implement digital asset tax classifications, and protect civil liberties.
SEC – Directed to provide clarity on registration, custody, trading, and recordkeeping for digital assets using its existing authority.
CFTC – Instructed to oversee spot markets for non-security digital assets and exercise its authority to modernize market practices.
Treasury – Responsible for faithfully and expeditiously implementing the GENIUS Act, as well as coordinating with banking agencies and the IRS on taxation and financial regulation matters.
Banking Agencies – Charged with ensuring that regulatory frameworks are updated to support the integration of digital assets within core banking services.
IRS – Expected to reduce taxpayer burdens and review tax guidance to better accommodate digital asset activities.

Relevance Score: 4 (Directives impact agency heads and top-level officials responsible for significant regulatory and legislative actions.)