The President’s Working Group on Digital Asset Markets has released a report aimed at establishing the United States as a leader in the digital asset sector. The report outlines key recommendations, including legislative changes to enhance regulatory oversight for non-security digital assets and the promotion of decentralized finance (DeFi) technologies. These measures are intended to facilitate innovation while ensuring consumer protection and maintaining the integrity of financial markets.

Additionally, the report discusses the need to modernize banking regulations to accommodate the unique characteristics of digital assets. This includes clarifying permissible banking activities related to custody and tokenization, as well as aligning capital rules with the actual risks posed by digital assets. The Working Group asserts that a supportive regulatory framework will help meet the growing demand for digital asset services from consumers.

Moreover, the report addresses the U.S. dollar’s role in the digital economy, proposing the implementation of the GENIUS Act to regulate stablecoins and enhance the payment infrastructure. It also highlights the importance of combating illicit finance through updated anti-money laundering regulations while ensuring fairness in digital asset taxation. Overall, the recommendations aim to create an environment conducive to innovation and growth in the digital financial technology sector.

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