Mark Twain Takes on US Digital Asset Policy: A Tale of Clarity and Chaos

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On the 30th day of July, 2025, the President’s Working Group on Digital Asset Markets, a bunch of folks who probably wouldn’t know a blockchain if it bit them, released a fact sheet that reads more like a novel. This document, thicker than my Aunt Polly’s cookbook, aims to establish the United States as the global leader in digital financial technology. It’s a pivotal moment, they say, shifting from the fog of regulatory uncertainty to the clear skies of coordinated legislative and agency-driven clarity. 🌤️

The following opinion editorial was written by Alex Forehand and Michael Handelsman for Kelman.Law.

From Executive Order to National Strategy

The Working Group was conjured up by Executive Order 14178, signed in January 2025, which tasked them with finding the barriers to innovation, suggesting fixes, and drafting a grand national strategy. And, oh yes, they were also told to reaffirm the administration’s stance that a U.S. central bank digital currency (CBDC) is about as useful as a screen door on a submarine. 🚢

Key Recommendations

The fact sheet lays out several key policy goals, each one more bewildering than the last:

  • Regulatory clarity and market structure reform: Congress is urged to expand the Commodity Futures Trading Commission’s (CFTC) jurisdiction over spot markets for digital commodities, while making it crystal clear what the Securities and Exchange Commission (SEC) oversees. It’s like asking a cat and a dog to share a bowl—good luck with that!
  • Fast-tracked agency rulemaking: Federal agencies are directed to speed up their guidance on trading, custody, registration, and safe harbor frameworks. In other words, they’re supposed to make things easier for startups, but we all know how well that usually works. 🏃‍♂️💨
  • Banking modernization: The administration wants to end discriminatory practices against digital asset companies, effectively putting an end to what critics called “Operation Choke Point 2.0.” It’s like telling a fish to stop being wet—good luck with that too! 😂

The Bitcoin Reserve: Notably Quiet

While the fact sheet nods to a commitment to sound crypto-backed fiscal infrastructure, it remains mum on any new developments regarding the Strategic Bitcoin Reserve and U.S. Digital Asset Stockpile, first announced in March 2025. This reserve, made up of seized or forfeited digital assets and managed by the U.S. Treasury, is meant to be a budget-neutral sovereign reserve. According to press coverage, more details are expected in an upcoming Treasury report. Stay tuned, folks, it’s going to be a wild ride! 🎢

Additional Recommendations

The Working Group also calls for:

  • Legislative action to implement the recently passed GENIUS Act, which regulates dollar-backed stablecoins. It’s a law so complex, even lawyers need a translator. 📜
  • A national effort to support infrastructure for digital tokenization and asset interoperability. Because why have one way to do things when you can have a dozen? 🤷‍♂️
  • IRS reforms to apply wash-sale rules to crypto assets and improve cost-basis reporting systems. Because nothing says “fun” like tax forms! 📝
  • A legislative prohibition on any form of U.S. CBDC, consistent with existing statutory frameworks. They’ve said it before, and they’ll say it again: no CBDC for you! 🙅‍♂️

Implications for the Industry

For legal and financial industry stakeholders, the Working Group’s roadmap signals a rapid shift toward institutional adoption and normalized regulatory treatment. Here’s what to watch:

  • Expanded oversight: Firms dealing with digital assets should prepare for enhanced SEC or CFTC scrutiny, depending on how their assets are classified. It’s like being watched by a hawk, but a very bureaucratic hawk. 🦅
  • Regulatory sandboxes: Early-stage crypto ventures may benefit from safe-harbor rules that temporarily shield them from enforcement while they develop. It’s like a playground where you can break all the rules, but only for a little while. 🏖️
  • Digital banking pathways: The end of regulatory hostility opens the door for federally chartered banks and credit unions to reenter the space. It’s like inviting the elephant back into the china shop. 🐘🏺
  • Legislation tracking: Continued movement on bills like the Clarity Act will determine the shape of market structure reform in the coming months. It’s a game of legislative ping-pong, and you never know which side the ball will land on. 🏓
  • Federal reserve disclosures: The crypto industry is closely monitoring for Treasury’s upcoming disclosure on sovereign crypto holdings. It’s like waiting for the other shoe to drop, but with more zeros. 🥿

Conclusion

The Working Group’s recommendations mark a high-water mark in digital asset policy. After years of fragmented guidance and enforcement-first approaches, the U.S. government now seems committed to a comprehensive regulatory framework that promotes growth while protecting investors. With coordinated legislative and agency action expected this fall, legal practitioners and industry leaders should stay alert to rapid shifts in rulemaking, tax policy, and licensing requirements. It’s a brave new world, and you don’t want to miss the boat. 🚀

Kelman PLLC continues to monitor developments in crypto regulation across jurisdictions and is available to advise clients navigating these evolving legal landscapes. For more information or to schedule a consultation, please contact us.

This article originally appeared at Kelman.law.

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2025-08-01 00:59