According to Executive Order 14178, a working group today released a 166-page report outlining how the U.S. can lead the blockchain industry and usher in a 'golden age of cryptocurrencies.'

The key information of the report can be summarized into four main demands: (i) a universal classification framework for the digital asset market, (ii) interconnection between the banking industry and the blockchain industry, (iii) accelerated adoption of stablecoins, (iv) guidelines for illegal finance and taxation.

In the real world, the momentum for transformation is increasingly evident, with collaborations between traditional financial institutions (such as JPMorgan) and blockchain-based platforms (such as Coinbase and Robinhood) indicating a significant shift towards actual financial innovation.

1. Countries recognizing the potential of blockchain are leading

In the U.S., the government actively recognizes the potential of blockchain and digital assets and is moving forward. On January 23, 2025, President Trump issued Executive Order 14178 'Strengthening U.S. Leadership in Digital Financial Technology,' which clarified regulatory guidelines and encouraged innovation in this field. According to this order, a cross-departmental working group recently released a 166-page report outlining how the U.S. can lead the blockchain industry and usher in a 'golden age of cryptocurrencies.'

The report reviews the long tradition of the U.S. in technological innovation and assesses that blockchain and digital assets (cryptocurrencies) have the potential to fundamentally change the financial system and asset ownership structure. The report also notes that overly strict measures, such as the previous government's so-called 'kill switch action 2.0,' have excluded legitimate crypto companies from the banking system and suggests that the government should actively support business activities related to these innovative technologies in the future, rather than suppressing them.

According to the spirit of Executive Order 14178, the report emphasizes that U.S. regulators should promote innovation through clear and consistent rules and attract crypto companies to operate domestically. The report urges agencies such as the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to collaborate on establishing clear standards and a common classification framework to eliminate regulatory loopholes. The report also suggests adopting a technology-neutral and flexible regulatory approach to new areas such as decentralized finance (DeFi) to ensure that innovation is not hindered by outdated rules.

Meanwhile, Hong Kong is also responding rapidly and following suit. In June 2023, the Hong Kong government introduced a formal licensing system for virtual asset exchanges, allowing limited participation from retail investors while regulating crypto trading. In May 2025, Hong Kong passed Asia's most progressive (Stablecoin Act), establishing licensing requirements for institutions issuing fiat-pegged stablecoins, effective from August 1. With this 'regulated yet innovation-friendly' approach, Hong Kong is expected to stimulate blockchain development and become one of Asia's leading digital asset centers.

2. The report's key information on 'strengthening the U.S. leadership in digital financial technology'

Since the Trump administration took office, the sentiment toward cryptocurrencies in the U.S. has shifted. As of June 2025, a survey found that 72% of crypto investors support President Trump's policies, with more than one-fifth of Americans now owning some form of cryptocurrency. Among these investors, 64% indicated that the government's supportive stance on cryptocurrency made them more inclined to invest than before. This optimistic sentiment is also spreading among institutional investors: a poll found that 83% of institutional investors plan to increase their allocation to digital assets by 2025.

These data indicate that a more friendly regulatory environment is invigorating the industry. Under the banner of 'supporting responsible innovation and growth,' the report repeatedly emphasizes that by implementing policies that support cryptocurrencies and a clear regulatory environment, the U.S. can take the lead in the upcoming blockchain revolution.

The key information of the report can be summarized into four main points. Let's examine them one by one.

2.1 A universal classification framework for the digital asset market must be established

This section discusses the legal and regulatory classification of digital assets and ways to improve market structure. Currently, in the U.S., there are no clear guidelines to determine whether a particular cryptocurrency is a security or a commodity. This ambiguity has led to jurisdictional conflicts between regulators (such as the SEC and CFTC) and left gaps of overlapping regulation. The report criticizes that 'the lack of a comprehensive classification framework has resulted in a chaotic array of interpretations, making good-faith participants trying to comply with regulations feel as if they are walking through a minefield,' emphasizing the urgent need to establish a clear and consensus-based classification law for digital assets.

For example, digital tokens used for fundraising may be considered securities (investment contracts) when sold, but once sufficiently decentralized, some believe they should no longer be considered securities. Currently, there is no standard that can explain this dynamic change in a project's lifecycle. This creates significant uncertainty for projects as they struggle to predict which laws will apply over time.

In this context, the report views positively the (Digital Asset Market Clear Act (CLARITY Act)) passed with bipartisan support in the U.S. House of Representatives in 2025. This Act divides digital assets into security tokens and non-security (commodity) tokens, explicitly granting the SEC jurisdiction over the former and the CFTC jurisdiction over the latter and the crypto spot market. The Act also includes provisions to protect Americans' rights to self-custody assets and engage in peer-to-peer transactions, recognizing the value of decentralized governance and decentralized finance (DeFi).

The report points out that the Digital Asset Market Clear Act will lay a solid foundation for the structure of the U.S. digital asset market, but also recommends some improvements during the legislative process. First, the report emphasizes the need to clarify the legal status of fully decentralized protocols and provides factors that lawmakers should consider, such as:

  • Does the given software protocol exert any actual 'control' over user assets;

  • Can the protocol be technically modified or upgraded;

  • Is there a centralized operator or governance structure;

  • Can the current regulatory obligations be technically enforced.

Based on these standards, true decentralized projects cannot be regulated in the traditional intermediary way, thus requiring a new approach. Regulators should develop a flexible framework that achieves policy goals without stifling innovation.

The report hopes that the Digital Asset Market Clear Act can provide this foundation and urges Congress to pass the Act swiftly. At the same time, the report suggests that regulators take immediate action during the transition period using existing authorities to increase regulatory clarity for market participants.

2.2 The banking industry and the blockchain industry should be interconnected

This section discusses the integration of the banking industry with the crypto industry and proposes policy recommendations for U.S. banks to expand their participation in digital assets under prudent regulation. The report mentions the previous government's attempts to cut off banking services to crypto companies—referred to as the 'kill switch action 2.0' policy—and criticizes it as a misguided attempt to stifle the legitimate industry by pushing it out of the banking system.

The report notes that this top-down pressure has led many U.S. crypto companies to face issues such as bank accounts being closed, which in turn causes consumer harm and the growth of unregulated 'shadow' markets as an unintended side effect. The report emphasizes that banks can gain much in terms of efficiency and cost savings by leveraging blockchain. For example, integrating distributed ledger technology into payment and settlement systems can facilitate real-time payments and atomic settlements 24/7, eliminating business hour restrictions and reducing costs associated with central clearinghouses. Some major banks have already moved in this direction, testing their own digital dollar tokens or blockchain platforms for bond settlements.

The recommendations in this section include:

  • Clarify the crypto-related activities permitted for banks and restore initiatives such as the Office of Regulatory Innovation to guide banks' actions in this area.

  • Increase the transparency of the bank charter and Federal Reserve account processes to facilitate new entrants and not unfairly prevent existing banks from servicing crypto clients.

  • Link bank capital requirements to actual risk and develop regulatory guidelines for new risk exposures such as tokenized assets.

2.3 Stablecoins should be viewed as innovative digital tools and actively promoted

This section focuses on the role of stablecoins in digital payment innovation and consolidating the dollar's dominance. Stablecoins are crypto assets with stable value, designed to maintain a 1:1 peg with fiat currencies like the dollar. Due to their nearly stable prices, they effectively act as digital cash in the crypto ecosystem.

The report assesses that the widespread use of dollar-pegged stablecoins could modernize payment infrastructure and help the U.S. move away from outdated traditional payment networks. For example, using stablecoins for international remittances or securities settlements could achieve near-instant processing without intermediary banks, and significantly lower costs. This would also enhance the international influence of the dollar. Currently, dollar-pegged stablecoins account for a significant share of global crypto trading volume, with a circulating value 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.

In this context, the report highlights the (Guidance and Establishment of the U.S. Stablecoin Innovation Act) (referred to as the GENIUS Act), which Congress passed this year. The Act (i) establishes a system for private dollar stablecoin issuers that is approved and regulated by the Federal Reserve, (ii) prohibits the Federal Reserve from developing a central bank digital currency (CBDC), thereby confirming a preference for private-sector-led digital dollar innovation. The report praises the GENIUS Act for 'incorporating an innovation-friendly framework into federal law' and strongly urges the Treasury and other relevant agencies to faithfully and promptly implement the Act.

The report also points out that while establishing stablecoin rules, it is necessary to address tax issues. Under current U.S. tax law, the definition of stablecoins is unclear, and their tax treatment may vary depending on whether they are viewed as currency or property. The report argues that this ambiguity imposes burdens on participants, and therefore, once a federal regulatory system for stablecoins is established, tax laws should be updated to clarify the classification of stablecoins and eliminate uncertainty.

The core message of this section can be summarized as: 'Actively promote stablecoins as a means of digital dollar innovation and firmly oppose central bank digital currencies, as they threaten U.S. freedom and financial stability.' Regarding stablecoins, the report urges the implementation of the newly passed GENIUS Act and suggests that, if necessary, additional legislation could be introduced to strengthen privacy protection and consumer safeguards.

The report also emphasizes that the U.S. should take the lead in establishing global standards for stablecoins and promoting cross-border payment innovation.

2.4 Guidelines must be established for illegal finance and taxation

This section discusses the illegal financial risks associated with cryptocurrencies (money laundering, terrorism financing, tax evasion, etc.) and the measures to address them. The report states, 'To embrace innovation while ensuring national security, we must modernize anti-money laundering (AML) regulations,' and analyzes the shortcomings of the current system.

Since crypto transactions are anonymous, borderless, and executed in real-time, the report acknowledges that enforcing laws designed for traditional banking, such as the Bank Secrecy Act (BSA) or the 'travel rule,' is challenging. For example, criminals may use decentralized exchanges or mixers to repeatedly swap or split funds, making transactions difficult to trace. The report cites specific cases—such as the misuse of decentralized finance (DeFi) by North Korean hacker groups in 2022 and ransomware attackers demanding cryptocurrency payments—to illustrate the need for current AML systems to be updated to address these new strategies.

At the same time, the report repeatedly emphasizes that AML/Counter-Terrorism Financing (CFT) enforcement must not be abused in a way that deviates from the law's intent. If AML regulations are used for political purposes or to stifle a particular industry, it will only erode trust in the financial system. Therefore, regulators themselves should operate under democratic oversight and transparency, and clearly formulate guidelines to avoid unfairly restricting legitimate businesses and users.

The final part of this section presents recommendations to address the ambiguity and uncertainty surrounding digital asset taxation. The report points out that while the IRS generally classifies cryptocurrencies as property, specific tax guidelines for new activities such as staking, mining, airdrops, or token wrapping have not been established, causing significant confusion for taxpayers. The report urges the IRS and the Treasury to issue clearer and more practical tax guidance and suggests considering a minimum tax exemption for small crypto transactions to prevent users from being penalized for using cryptocurrencies for everyday payments.

3. More people should better understand cryptocurrencies

Many countries and companies—led by the U.S.—are rushing to announce and implement blockchain strategies, not merely to follow trends, but because they foresee the trajectory of the market and have prepared in advance. In the U.S., companies such as Messari, Delphi, Galaxy Research, and rwa.xyz continue to provide high-quality research to help institutions formulate forward-looking strategies regarding blockchain and digital assets. Protocols like Ondo Finance and Morpho have built secure on-chain financial services, while companies such as BitGo and Coinbase provide reliable infrastructure for institutions to invest in crypto assets.

In contrast, South Korea's fundamental understanding and preparation for the blockchain industry—especially stablecoins—remain inadequate. Discussions about stablecoins still tend to focus on the failure of Terra or debates about why stablecoins do not work, with debates always revolving around issuance rather than real-world applications. However, stablecoins have demonstrated various use cases globally, and South Korea should not only focus on issuance but also develop products that integrate them into daily life. Achieving this first requires policy support and a clear regulatory environment.

Because the blockchain industry (especially stablecoins) is still in its early stages, it is indeed challenging to point out specific successful cases to justify its adoption. However, this is precisely why maintaining an open attitude—essentially saying 'let's take a serious look and try to understand this'—is so important. Only by starting to understand now can we hope to keep pace with the rapidly changing landscape.

4. Everything is now in place

The boundaries between finance and the blockchain industry have begun to blur, and leaders from both sides are starting to collaborate. A typical example is the partnership between JPMorgan, the largest bank in the U.S., and the crypto exchange Coinbase. JPMorgan announced that its credit card customers can convert reward points into USDC on Coinbase's Base blockchain. The bank will also link customer accounts directly to the Coinbase platform, enabling seamless, nearly instant conversion between fiat and cryptocurrency. This is a milestone integration between traditional banks and crypto exchanges, indicating that major financial institutions now recognize digital assets as a legitimate component of their financial services.

This trend is not limited to banks and exchanges. Coinbase is also partnering with Morpho to expand into on-chain finance—specifically decentralized finance (DeFi). Through this collaboration, users can deposit their held Bitcoin via the Coinbase app and use it as collateral to borrow USDC for daily expenses. This demonstrates an asset utilization strategy that traditional finance cannot achieve. In fact, investors can manage their daily cash flow while continuing to hold Bitcoin, indicating that blockchain-based financial innovation has entered a practical stage.

Another development has emerged in the fintech sector. The popular trading platform Robinhood is launching its own Layer-2 blockchain to provide infrastructure for on-chain issuance and trading of listed and private stocks. The Robinhood chain will ultimately connect with the Ethereum ecosystem. This means that fintech platforms will no longer just offer brokerage services, but can leverage their own blockchain to handle a wider range of on-chain financial assets. In short, a new trend is forming where traditional fintech platforms are adopting blockchain to achieve asset ownership and liquidity in unprecedented ways.

Unfortunately, unlike these global financial innovation cases, Korea still lags behind. There has not yet been any concrete collaboration or merger initiatives between Korean banks, exchanges, fintech startups, and DeFi projects. Korean institutions may at least need to try a private blockchain platform (such as JPMorgan's private Kinexis network) to gain practical experience. Major countries and financial institutions worldwide have been outlining blockchain-driven financial blueprints and actively engaging in cooperation. If Korea continues to do nothing, all domestic discussions will inevitably remain in the theoretical phase, never materializing.

Of course, implementing blockchain is not easy, and it is understandable to remain cautious while its market impact is not yet clear. However, avoiding issues due to uncertainty or delaying action indefinitely is not the best choice. The transformation of the financial system driven by blockchain has already begun, and leaders are rapidly learning and accelerating development. The only remaining question is when and how other countries will decide to join this wave.

The momentum for transformation is becoming increasingly clear, and now the puzzle pieces have come together, making it the right time to fundamentally deepen our understanding of the blockchain industry and to seriously consider and take action to adopt it.