Time for crypto/acc

Key Takeaways

• A working group on Executive Order 14178 published a 166-page report today outlining how the U.S. can lead the blockchain industry and usher in a "Golden Age of Crypto."

• The report's key messages can be grouped into four main needs for: (i) A Common Classification Framework for the Digital Asset Market, (ii) interlinking Banking and the Blockchain Industry, (iii) accelerating stablecoin adoption, and (iv) Guidelines for Illicit Finance and Taxation.

• In the real world, the momentum of change is growing clearer, as collaborations between traditional financial institutions (e.g., JPMorgan Chase) and blockchain-based platforms (e.g., Coinbase, Robinhood) illustrate a significant move toward practical financial innovation.

• Although countries like the U.S. are leading, Korea should take more action and maintain an open attitude - essentially saying, "let's take a proper look and try to understand this" - which is crucial. Only by beginning to understand it now can we hope to keep up with the rapid pace of change.

1. Countries That Recognized Blockchain’s Potential Are Pulling Ahead

In America, the government is actively recognizing the potential of blockchain and digital assets and is forging ahead. On January 23, 2025, President Donald Trump issued Executive Order 14178, “Strengthening American Leadership in Digital Financial Technology,” which laid out clear regulatory guidelines and encouraged innovation in this field. Pursuant to that order, an interagency working group published a 166-page report today outlining how the U.S. can lead the blockchain industry and usher in a “Golden Age of Crypto.”

The report recalls America’s long tradition of technological innovation and assesses that blockchain and digital assets (cryptocurrencies) have the potential to fundamentally transform financial systems and asset ownership structures. It also points out that overly restrictive measures like the previous administration’s so-called “Operation Choke Point 2.0” had excluded law-abiding crypto companies from the banking system, and it suggests that going forward, the government should actively support business activities related to these innovative technologies rather than suppress them.

Aligned with the spirit of Executive Order 14178, the report emphasizes that U.S. regulators should foster innovation through clear, consistent rules and draw crypto companies to operate within the country. It urges agencies like the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to collaborate on establishing explicit standards and a common classification framework to eliminate regulatory gaps. The report also suggests applying a technology-neutral, flexible regulatory approach to new areas such as decentralized finance (DeFi), ensuring that innovation is not hindered by outdated rules.

Source: Strengthening American Leadership in Digital Financial Technology – The White House

Meanwhile, Hong Kong is also responding quickly and following suit. In June 2023, the Hong Kong government introduced a formal licensing regime for virtual asset exchanges that regulates crypto trading while allowing limited participation for retail investors. In May 2025, it passed Asia’s most progressive “Stablecoin Act,” establishing a licensing requirement for issuers of fiat-pegged stablecoins effective August 1. Thanks to this “regulated yet innovation-friendly” approach, Hong Kong is poised to spur blockchain development and emerge as one of Asia’s leading digital asset hubs.

2. Key Messages of the Report “Strengthening American Leadership in Digital Financial Technology”

The sentiment around crypto in America has changed since the Trump administration took office. As of June 2025, a survey found that 72% of crypto investors support President Trump’s policies, and more than one in five Americans, now own some form of cryptocurrency. Among those investors, 64% said the administration’s pro-crypto stance has made them more inclined to invest in crypto than before. This optimism is spreading to institutional investors as well: one poll found 83% of institutional investors plan to increase their allocation to digital assets in 2025.

These numbers show that a friendlier regulatory environment is reinvigorating the industry. Under the administration’s banner of “supporting responsible innovation and growth,” the report repeatedly emphasizes that by implementing crypto-friendly policies and a clear regulatory environment, the U.S. can seize the lead in the coming blockchain revolution.

The report’s key messages can be grouped into four main points. Let’s take a closer look at each.

2.1 A Common Classification Framework for the Digital Asset Market Must Be Established

This section addresses the legal and regulatory classification of digital assets and ways to improve market structure. Currently in the U.S., there are no clear criteria for determining whether a given cryptocurrency is a security or a commodity. This ambiguity has led to jurisdictional conflicts between regulators (such as the SEC vs. CFTC) and left overlapping gaps in oversight. The report criticizes that “the lack of a comprehensive classification framework has created a patchwork of interpretations, leaving well-intentioned actors trying to comply with regulations feeling like they’re walking through a minefield,” underscoring the urgent need for a clear, agreed-upon taxonomy of digital assets.

For example, a digital token sold for fundraising might be considered a security (an investment contract) at the time of sale, but once it becomes sufficiently decentralized, some argue it should no longer be deemed a security. At present, there are no standards that account for such dynamic changes over a project’s lifecycle. This leaves projects facing great uncertainty, as it’s very difficult for them to predict which laws will apply over time.

In this context, the report looks favorably on the proposed “Digital Asset Market Clarity Act (CLARITY Act),” which passed the U.S. House in 2025 with bipartisan support. The CLARITY Act would classify digital assets into security tokens vs. non-security (commodity) tokens, explicitly giving the SEC jurisdiction over the former and the CFTC jurisdiction over the latter and crypto spot markets. It also contains provisions to protect Americans’ rights to self-custody assets and conduct peer-to-peer transactions, and it acknowledges the value of decentralized governance and DeFi.

The report notes that CLARITY would form an “excellent foundation for the structure of the U.S. digital asset market,” but it also suggests a few improvements during the legislative process. First and foremost, it stresses the need to clarify the legal status of fully decentralized protocols. It provides lawmakers with factors to consider, such as:

• whether a given software protocol exercises any actual “control” over users’ assets;

• whether the protocol can be technically altered or upgraded;

• whether there is a centralized operator or governance structure;

• and whether current regulatory obligations can be technically enforced on it.

Given these criteria, the idea is that truly decentralized projects cannot be regulated in the same way as traditional intermediaries, so a new approach is needed. Regulators should craft a flexible framework that addresses policy objectives without stifling innovation.

The report expresses hope that the CLARITY Act will provide this foundation and urges Congress to enact it swiftly. It also recommends that in the interim, regulators use their existing authority to take immediate steps that increase regulatory clarity for market participants.

2.2 The Banking and the Blockchain Industry Should Be Interlinked

This section discusses integrating the banking sector with the crypto industry. It offers policy recommendations on how U.S. banks can expand their involvement with digital assets under prudent regulation. The report references the prior administration’s effort to cut off banking services to crypto firms - the policy nicknamed “Operation Choke Point 2.0” - and criticizes it as a misguided attempt to suffocate a legitimate industry by pushing it outside the banking system.

It points out that this kind of top-down pressure led many U.S. crypto companies to face issues like having their bank accounts closed, which in turn caused consumer harm and the growth of unregulated “shadow” markets as unintended side effects.

The report emphasizes that banks have much to gain in efficiency and cost savings by leveraging blockchain. For instance, integrating distributed ledgers into payment and settlement systems could enable 24/7 real-time payments and atomic settlement of trades, removing the constraints of business hours and reducing costs associated with central clearinghouses. Some major banks are already moving in this direction, testing their own digital dollar tokens or blockchain platforms for bond settlement.

The report’s recommendations in this section include:

• Clarify permissible crypto-related activities for banks, and revive initiatives like regulatory innovation offices to guide banks in this area.

• Make the bank chartering and Federal Reserve account process more transparent to facilitate new entrants, and do not unfairly block existing banks from serving crypto clients.

• Align bank capital requirements with actual risks, and develop supervisory guidance for new exposures such as tokenized assets.

2.3 Stablecoins Should Be Recognized as an Innovative Digital Tool and Actively Pushed

This section centers on stablecoins in the context of digital payment innovation and reinforcing the U.S. dollar’s dominance. Stablecoins are value-stable crypto assets designed to maintain a 1:1 peg to a fiat currency like the U.S. dollar. Because their prices hardly fluctuate, they effectively serve as digital cash within the crypto ecosystem.

The report assesses that widespread use of dollar-pegged stablecoins can modernize the payments infrastructure and help the U.S. break away from its aging traditional payment networks. For instance, using stablecoins for international remittances or securities settlement allows near-instant processing without intermediary banks, at much lower fees. This would also enhance the U.S. dollar’s international reach. Currently, dollar-based stablecoins account for a significant share of global crypto trading volume and have tens of billions of dollars worth in circulation. The report stresses that, to lead this trend, the U.S. must establish a clear federal regulatory framework for stablecoins.

In this context, the report highlights the “ Guiding and Establishing National Innovation for U.S. Stablecoins Act,” commonly known as the GENIUS Act, which was passed by Congress this year. The GENIUS Act (i) sets up a system for private U.S. dollar stablecoin issuers to be approved and regulated by the Federal Reserve, and (ii) prohibits the Federal Reserve from building out CBDC, thereby affirming a preference for private-sector-led digital dollar innovation. The report praises the GENIUS Act for “enshrining an innovation-friendly framework into federal law,” and strongly urges the Treasury and other relevant agencies to implement it faithfully and without delay.

The report also notes that alongside establishing stablecoin rules, it’s necessary to resolve tax issues. Under current U.S. tax law, the definition of a stablecoin is unclear, and the tax treatment could differ depending on whether it’s viewed as currency or as property. The report suggests that this ambiguity imposes a burden on participants, so once a federal regulatory regime for stablecoins is in place, the tax code should be updated to clearly classify stablecoins and remove uncertainty.

The core message of this section can be summed up as: “Actively foster stablecoins as a means of digital dollar innovation, and firmly reject CBDCs because they threaten American freedom and financial stability.” On stablecoins, the report urges enforcement of the newly enacted GENIUS Act and even suggests that, if necessary, additional legislation could be introduced to strengthen privacy protections and consumer safeguards.

It also emphasizes that the U.S. should take the lead internationally in setting global standards for stablecoins and driving cross-border payment innovation.

2.4 Guidelines for Illicit Finance and Taxation Must Be Developed

This section addresses the risks of illicit finance involving cryptocurrency (money laundering, terrorist financing, tax evasion, etc.) and ways to counter them. The report prefaces that “to embrace innovation while safeguarding national security, we must modernize AML norms,” and it analyzes gaps in the current system.

Because crypto transactions are pseudonymous, borderless, and executed in real time, the report acknowledges that it’s challenging to enforce laws like the Bank Secrecy Act (BSA) or the “Travel Rule,” which were designed for traditional banking. For example, criminals might use decentralized exchanges or mixers to swap or split funds repeatedly, making transactions difficult to trace. The report cites concrete cases - such as North Korean hacking groups abusing DeFi in 2022, and ransomware attackers demanding crypto payments - to illustrate how the current AML regime needs updates to cover these new tactics.

At the same time, it repeatedly emphasizes that AML/CFT enforcement must not be misused in ways that stray from the law’s intent. If AML regulations are abused for political purposes or to strangle a particular industry, it will only erode trust in the financial system. Therefore, regulators should themselves operate under democratic oversight and transparency, and they should clearly articulate guidelines so as not to unfairly constrict legitimate businesses and users.

The final part of this section offers recommendations to resolve ambiguity and uncertainty in how digital assets are “taxed.” It points out that while the IRS has generally classified cryptocurrency as property, there are no specific tax guidelines yet for new activities like staking, mining, airdrops, or token wrapping – and this lack of clarity is causing significant confusion for taxpayers. The report urges the IRS and the Treasury to issue clearer and more practical tax guidance. It also suggests considering a de minimis tax exemption for small crypto transactions, so that users aren’t penalized for using crypto for everyday payments.

3. More People Should Understand Crypto Better

Source: X (@glxyresearch)

The reason so many countries and companies - the America being a prime example - are scrambling to announce and implement blockchain strategies is not just because they are just following the trend. It’s because they anticipated the market’s trajectory and prepared for it early. In the U.S., firms like Messari, Delphi, Galaxy Research, and rwa.xyz have consistently provided high-quality research to help institutions devise forward-looking strategies for blockchain and digital assets. Protocols like Ondo Finance and Morpho have built secure on-chain financial services, while companies such as BitGo and Coinbase have delivered the reliable infrastructure that allows institutions to invest in crypto assets.

In Korea, by contrast, the fundamental understanding and preparedness for the blockchain industry - stablecoins being a notable example - remain insufficient. Discussions about stablecoins still tend to fixate on Terra’s failure or on arguments about why stablecoins won’t work, and the debate keeps revolving around issuance rather than real-world usage. Yet stablecoins are already demonstrating a variety of use cases globally, and efforts should focus not only on issuing them but also on developing products that integrate them into everyday life. Achieving this will require policy support and a clear regulatory environment above all.

Because the blockchain industry (and stablecoins in particular) is still in its early stages, it’s admittedly challenging to point to concrete success stories to justify adoption. However, that is precisely why maintaining an open attitude - essentially saying, “let’s take a proper look and try to understand this” - is so crucial. Only by beginning to understand it now can we hope to keep up with the rapid pace of change.

4. Now the Pieces Are Falling into Place

The boundaries between finance and the blockchain sector have started to blur, and leading players from each side are beginning to collaborate. A prime example is the partnership between the largest U.S. bank JPMorgan Chase and the crypto exchange Coinbase. Chase announced that it will let its credit card customers convert reward points into USDC on Coinbase’s Base blockchain. The bank will also link customer accounts directly to the Coinbase platform, enabling seamless, near-instant exchange between fiat currency and cryptocurrency. This is a landmark integration between a traditional bank and a crypto exchange, showing that major financial institutions are now recognizing digital assets as legitimate components of their financial services.

This trend isn’t limited to banks and exchanges. Coinbase has also partnered with Morpho to expand into on-chain finance - in other words, the DeFi realm. Through this collaboration, users can deposit Bitcoin they hold via the Coinbase app and use it as collateral to borrow USDC for everyday spending. This showcases an asset utilization strategy that wasn’t possible in traditional finance. In effect, investors can keep holding Bitcoin while still managing their day-to-day cash flow, indicating that blockchain-based financial innovation has moved into a tangible, practical phase.

Another development is emerging in the fintech space. The popular trading platform Robinhood is launching its own Layer-2 blockchain to provide infrastructure for issuing and trading both listed and private stocks on-chain. The Robinhood Chain will eventually connect to the Ethereum ecosystem. This means that instead of simply offering brokerage services, a fintech platform can leverage its own blockchain to handle a much broader range of financial assets on-chain. In short, a new trend is taking shape in which traditional fintech platforms are adopting blockchain to enable asset ownership and liquidity in ways previously not possible.

Unfortunately, unlike these global examples of financial innovation, Korea is still falling behind. There have been no tangible moves such as collaborations or mergers bridging Korean banks, exchanges, fintech startups, and DeFi projects. It might be necessary for Korean institutions to at least experiment with a private blockchain platform (even something like JPMorgan’s private Kinexis network) to gain hands-on experience. Major countries and financial institutions around the world are already sketching out blueprints for blockchain-driven finance and actively engaging in partnerships. If Korea continues to attempt nothing, all domestic discussions will inevitably remain theoretical talk that never leaves the drawing board.

Certainly, implementing blockchain is not easy, and caution is understandable when its market impact isn’t yet clear. But avoiding the issue or endlessly delaying action due to uncertainty is not the best choice. Change driven by blockchain in the financial system has already begun, and the front-runners are learning fast and accelerating. The only thing left is for everyone else to decide when and how to join this wave.

The momentum of change is growing clearer, and now that the puzzle pieces are coming together, this is precisely the time to radically deepen our understanding of the blockchain industry - and to seriously contemplate and act on adopting it.