Key Takeaways From The Working Group On Digital Assets Markets Report

Key Points

1. The report urges Congress to move beyond piecemeal oversight and deliver a comprehensive statutory framework for digital assets to reduce legal ambiguity and compliance friction.

2. Stablecoins, particularly USD-backed stablecoin ecosystems, continue to be a focal point in policy discussions, as highlighted in recent Treasury statements and the GENIUS Act.

3. The report recommends revisiting tax policies on staking and mining rewards, which currently trigger tax obligations upon issuance rather than upon sale or realization.

4. Concerns about the vertically integrated model of crypto exchanges (acting as broker, custodian, and trading venue) have prompted calls for enhanced disclosure and audits to improve transparency in solvency and reserve holdings.

5. The report emphasizes the need for collaboration with industry groups like the Wall Street Blockchain Alliance and the Digital Chamber of Commerce to address critical issues in the crypto space.