The U.S. government actively promotes Blockchain innovation and development

Recently, Working Group 14178 issued a 166-page report outlining how the United States is leading the Blockchain industry and embracing the "Crypto Golden Age."

The core content of the report can be summarized in four key points: establishing a unified classification framework for the digital asset market; interconnection between the banking industry and the Blockchain industry; accelerating the adoption of stablecoins; and formulating guidelines for illegal financial activities and taxation.

In the real world, the momentum for change is becoming increasingly evident. The collaboration between traditional financial institutions and blockchain-based platforms is showcasing an important trend towards practical financial innovation.

1. Those who recognize the trend of Blockchain will lead the way

The U.S. government is actively recognizing the potential of blockchain and digital assets, and is vigorously promoting it. In January 2025, President Trump issued Executive Order 14178, "Strengthening the United States' Leadership in Digital Financial Technologies," which established clear regulatory guidelines and encouraged innovation in the field.

The report reviews the tradition of technological innovation in the United States and assesses how Blockchain and digital assets have the potential to fundamentally change the financial system and the structure of asset ownership. The report notes that overly restrictive measures have previously excluded legitimate and compliant crypto companies from the banking system. The report suggests that in the future, the government should actively support business activities related to these innovative technologies rather than suppressing them.

The report emphasizes that U.S. regulators should promote innovation and attract crypto companies to operate domestically through clear and consistent rules. It urges agencies such as the Securities and Exchange Commission and the Commodity Futures Trading Commission to collaborate in establishing clear standards and a unified classification framework to eliminate regulatory gaps. At the same time, it suggests adopting a technology-neutral and flexible regulatory approach in emerging areas such as decentralized finance to ensure that innovation is not hindered by outdated rules.

At the same time, Hong Kong has quickly responded by following suit. In June 2023, the Hong Kong government officially launched a licensing system for virtual asset exchanges, aimed at regulating cryptocurrency trading while allowing retail investors to participate to a limited extent. In May 2025, it passed Asia's most advanced "Stablecoin Act," which sets licensing requirements for institutions issuing stablecoins pegged to fiat currencies. Thanks to this approach of "regulation and innovation coexisting," Hong Kong is expected to promote Blockchain development and become one of Asia's leading digital asset centers.

2. Key Information of the Report

Since the Trump administration took office, the United States' attitude towards cryptocurrencies has changed. A survey conducted as of June 2025 shows that 72% of cryptocurrency investors support President Trump's related policies, and more than one-fifth of Americans now hold some form of cryptocurrency. 64% of investors indicated that the government's pro-crypto stance makes them more inclined to invest in cryptocurrencies. This optimism has also spread to institutional investors: 83% of institutional investors plan to increase their allocation to digital assets in 2025.

The data indicates that a more friendly regulatory environment is injecting new vitality into the cryptocurrency industry. Under the government's slogan of "supporting responsible innovation and growth," the report repeatedly emphasizes that by implementing friendly cryptocurrency policies and establishing a clear regulatory environment, the United States is expected to take a leading position in the upcoming Blockchain revolution.

2.1 Establishing a Unified Classification Framework for Digital Asset Markets

The report discusses the legal and regulatory classification of digital assets, as well as ways to improve market structure. Currently, there are no clear standards in the United States to define whether a particular cryptocurrency is a security or a commodity, and this ambiguity has led to jurisdictional conflicts between regulatory agencies, leaving loopholes with regulatory overlaps. The report points out that the lack of a comprehensive classification framework has resulted in a chaotic array of interpretations, making it feel like participants trying to comply with regulations are walking through a minefield.

The report expresses support for the proposed "Digital Asset Market Clarity Act." This act categorizes digital assets into security tokens and non-security ( commodity ) tokens, clearly granting the SEC jurisdiction over the former and the CFTC jurisdiction over the latter and the cryptocurrency spot market. The act also includes provisions to protect Americans' rights to self-custody assets and engage in peer-to-peer transactions, and acknowledges the value of decentralized governance and DeFi.

The report points out that the Clear Act will "lay a good foundation for the structure of the U.S. digital asset market," but also suggests some improvements in the legislative process. Firstly, the report emphasizes the need to clarify the legal status of fully decentralized protocols. The report provides lawmakers with some factors to consider, such as:

• Does the given software protocol implement any actual "control" over user assets?
• Can the protocol be technically modified or upgraded?
• Is there a centralized operator or governance structure?
• And whether the current regulatory obligations can be enforced technically.

In light of these standards, the report argues that truly decentralized projects cannot be regulated like traditional intermediaries, and therefore a new approach is needed. Regulators should establish a flexible framework that achieves policy objectives while avoiding stifling innovation.

2.2 The banking industry and the blockchain industry should be interconnected.

This section discusses the integration of the banking industry with the cryptocurrency sector and presents policy recommendations on how U.S. banks can expand their participation in digital assets under prudent regulation. The report mentions the previous government's measures to cut off banking services to cryptocurrency companies and criticizes them, arguing that it is a mistake to stifle the development of a legitimate industry by pushing it away from the banking system.

The report points out that this top-down pressure has led many American cryptocurrency companies to face issues such as bank accounts being closed, resulting in unexpected side effects such as consumer harm and the growth of unregulated "shadow" markets.

The report emphasizes that banks can significantly improve efficiency and reduce costs by utilizing Blockchain technology. For instance, integrating distributed ledgers into payment and settlement systems can enable round-the-clock real-time payments and atomic settlements of transactions, thereby eliminating the restrictions of business hours and lowering costs associated with central clearinghouses. Some large banks have been moving in this direction, testing their own digital dollar tokens or Blockchain platforms for bond settlements.

The recommendations presented in this section of the report include:

• Clarify the cryptocurrency-related activities permitted by banks and restore initiatives such as the Regulatory Innovation Office to provide guidance for banks in this field.
• Enhance the transparency of the bank license approval and Federal Reserve account application processes to facilitate the entry of new businesses while preventing unfair obstruction of existing banks from serving crypto clients.
• Combine bank capital requirements with actual risks and develop regulatory guidance for new risk exposures such as tokenized assets.

2.3 Stablecoins should be regarded as innovative digital tools and actively promoted.

This section focuses on stablecoins in the context of digital payment innovations and how they reinforce the dominance of the US dollar. Stablecoins are a type of cryptocurrency that maintains a stable value, designed to be pegged 1:1 with fiat currencies like the US dollar. Due to their low price volatility, they effectively serve as digital cash within the cryptocurrency ecosystem.

The report assesses that the widespread use of dollar-pegged stablecoins can modernize payment infrastructure and help the U.S. escape its increasingly aging traditional payment networks. For example, using stablecoins for international remittances or securities settlement can achieve near-instant processing without intermediary banks and significantly reduce costs. This will also enhance the international influence of the dollar. Currently, dollar-based stablecoins account for a significant share of global cryptocurrency trading volume, with a circulation scale reaching hundreds of billions of dollars. The report emphasizes that to lead this trend, the U.S. must establish a clear federal regulatory framework for stablecoins.

Against this backdrop, the report highlights the "Stablecoin Innovation and Protection Act" passed by the U.S. Congress this year. The bill establishes a system of privately issued dollar stablecoin issuers approved and regulated by the Federal Reserve; it prohibits the Federal Reserve from constructing central bank digital currency, thus clearly favoring private sector-led digital dollar innovation. The report praises the bill for "incorporating a framework beneficial to innovation into federal law" and strongly urges the Treasury and other relevant agencies to implement the bill seriously and in a timely manner.

The report also points out that while establishing stablecoin regulations, addressing tax issues is also crucial. According to current U.S. tax law, the definition of stablecoins is still unclear, and their tax treatment may vary depending on whether they are considered currency or property. The report indicates that this ambiguity creates burdens for participants; therefore, once the federal stablecoin regulatory framework is in place, tax laws should be updated to clarify the classification of stablecoins, thus eliminating uncertainty.

The core message of this section can be summarized as: "Actively promote stablecoins as a means of innovating digital dollars, and firmly reject central bank digital currencies, as they threaten America's freedom and financial stability." Regarding stablecoins, the report urges strict enforcement of the newly enacted legislation and suggests introducing additional legislation as necessary to strengthen privacy protection and consumer safeguards.

The report also emphasizes that the United States should lead the establishment of global standards for stablecoins internationally and promote innovation in cross-border payments.

2.4 Must establish guidelines for illegal financial activities and taxation.

This section discusses the illegal financial risks associated with cryptocurrencies and the measures to address them. The report begins by stating, "To embrace innovation while ensuring national security, we must modernize anti-money laundering regulations," and analyzes the vulnerabilities in the current system.

Due to the anonymity, borderless nature, and real-time execution of cryptocurrency transactions, the report acknowledges that laws enacted for traditional banking practices face challenges. For example, criminals may repeatedly exchange or split funds using decentralized exchanges or mixing services, making transactions difficult to trace. The report cites several specific cases to illustrate that current anti-money laundering mechanisms need to be updated to address these new strategies.

At the same time, the report emphasized multiple times that anti-money laundering and counter-terrorism financing enforcement should not be abused or deviate from the original intent of the law. If anti-money laundering regulations are used for political purposes or to suppress specific industries, it will only weaken public trust in the financial system. Therefore, regulatory agencies themselves should operate under democratic oversight and transparency, and clearly articulate guidelines to avoid imposing unfair restrictions on legitimate businesses and users.

The last part of this section presents suggestions to address the ambiguity and uncertainty related to the "taxation" of digital assets. The report points out that although the IRS generally classifies cryptocurrencies as property, specific tax guidelines have not yet been established for new activities such as staking, mining, airdrops, or token wrapping. This lack of clarity is causing significant confusion for taxpayers. The report urges the IRS and the Department of the Treasury to issue clearer and more practical tax guidance and suggests considering a tax exemption policy for small cryptocurrency transactions to avoid penalizing users for using cryptocurrencies for everyday payments.

3. Help more people better understand cryptocurrency

Many countries and companies are competing to announce and implement blockchain strategies, not just because they are following the trend, but because they have anticipated the development trajectory of the market and made preparations in advance. In the United States, some companies have consistently provided high-quality research to help institutions formulate forward-looking strategies for blockchain and digital assets. Some protocols have built secure on-chain financial services, while some enterprises have provided reliable infrastructure that enables institutions to invest in crypto assets.

In contrast, some countries still lack a basic understanding and preparation for the blockchain industry. Discussions about stablecoins remain focused on failure cases or debates about why stablecoins are not feasible, with the debate always revolving around issuance issues rather than actual applications. However, stablecoins have demonstrated various application scenarios globally, and efforts should not only focus on issuance but also on developing products that integrate them into daily life. To achieve this goal, policy support and a clear regulatory environment are first needed.

Due to the fact that the blockchain industry is still in its early stages, it is difficult to list specific successful cases to prove the applicability of its integration.