The United States Leads the Blockchain Industry, Welcoming the "Encryption Gold Era"

The 14178th Executive Order Task Force recently released a 166-page report outlining how the United States is leading the Blockchain industry and welcoming the "encryption golden age".

The core contents of the report can be summarized into four key points: establishing a unified classification framework for the digital asset market; interconnection between the banking industry and the Blockchain industry; accelerating the adoption of stablecoins; and formulating guidelines for illegal financial activities and taxation.

In the real world, the momentum for change is becoming increasingly evident. The cooperation between traditional financial institutions and blockchain-based platforms is demonstrating an important trend towards practical financial innovation.

Although countries like the United States are leading in this field, other countries should also take more action and maintain an open attitude. Only by starting to understand now can they avoid being left behind in the wave of rapid change.

1. Those who recognize the trend of Blockchain will take the lead

In the United States, the government is actively recognizing the potential of Blockchain and digital assets and is making strong efforts to promote them. On January 23, 2025, President Trump issued Executive Order 14178, "Strengthening America's Leadership in Digital Financial Technology," which established clear regulatory guidelines and encouraged innovation in the field. According to the order, the Executive Order 14178 working group released a 166-page report outlining how the United States can lead the Blockchain industry and embrace the "encryption gold era."

The report reviews the long-standing tradition of technological innovation in the United States and assesses how Blockchain and digital assets have the potential to fundamentally change the financial system and the structure of asset ownership. The report also points out that overly restrictive measures, like the previous administration's so-called "Operation Choke Point 2.0", have excluded legitimate and compliant encryption companies from the banking system. The report recommends that future governments should actively support business activities related to these innovative technologies rather than suppressing them.

The report embodies the spirit of Executive Order 14178, emphasizing that U.S. regulators should promote innovation by establishing clear and consistent rules to attract crypto companies to operate domestically. The report urges relevant agencies to collaborate in establishing clear standards and a unified classification framework to eliminate regulatory gaps. Additionally, the report suggests adopting a technology-neutral and flexible regulatory approach in emerging areas such as decentralized finance, ensuring that innovation is not hindered by outdated rules.

At the same time, Hong Kong also responded quickly and followed suit. In June 2023, the Hong Kong government officially implemented a licensing system for virtual asset exchanges, aimed at regulating encryption currency trading while allowing retail investors to participate to a limited extent. In May 2025, the bill passed Asia's cutting-edge "Stablecoin Act," which establishes licensing requirements for institutions issuing stablecoins pegged to fiat currencies. It will officially come into effect on August 1, 2025. Thanks to this approach of "coexistence of regulation and innovation," Hong Kong is expected to drive Blockchain development and become one of Asia's leading digital asset centers.

2. Key Information from the Report "Strengthening America's Leadership in Digital Financial Technology"

Since the Trump administration took office, the sentiment towards cryptocurrency in the United States has changed. A survey conducted as of June 2025 showed that 72% of cryptocurrency investors support President Trump's relevant policies, and more than one-fifth of Americans now hold some form of cryptocurrency. Among these investors, 64% indicated that the government's pro-crypto stance makes them more inclined to invest in cryptocurrency than before. This optimistic sentiment is also spreading to institutional investors: a poll shows that 83% of institutional investors plan to increase their allocation to digital assets in 2025.

These data indicate that a friendlier regulatory environment is injecting new vitality into the encryption industry. Under the government's slogan of "supporting responsible innovation and growth," the report repeatedly emphasizes that by implementing friendly encryption policies and establishing a clear regulatory environment, the United States is expected to seize a leading position in the upcoming Blockchain revolution.

The core content of the report can be summarized into four key points. Let's delve into each one in detail.

2.1 Establish a Unified Classification Framework for the Digital Asset Market

This section discusses the legal and regulatory classification of digital assets, as well as methods to improve market structure. Currently, the United States does not have a clear standard to define whether a certain cryptocurrency is a security or a commodity. This ambiguity has led to jurisdictional conflicts among regulators and has left gaps in regulatory overlaps. The report points out that "the lack of a comprehensive classification framework has resulted in a chaotic array of interpretations, making good faith participants attempting to comply with regulations feel as if they are walking through a minefield," highlighting the urgent need for a clear and unified classification system for digital assets.

For example, digital tokens used for fundraising may be considered securities when sold, but once they are sufficiently decentralized, some believe they should no longer be regarded as securities. Currently, there is no standard that can account for this dynamic change throughout the project lifecycle. This creates significant uncertainty for projects, as they find it difficult to predict which laws will apply over time.

In this context, the report expresses support for the proposed "Digital Asset Market Clarity Act." This act was passed in the U.S. House of Representatives in 2025 with bipartisan support. The CLARITY Act categorizes digital assets into security tokens and non-security (commodity) tokens, clearly granting relevant agencies jurisdiction over different types of tokens. The act also includes provisions to protect Americans' rights to self-custody assets and engage in peer-to-peer transactions, and recognizes the value of decentralized governance and decentralized finance.

The report points out that the 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. The report provides legislators with several factors to consider, such as:

• Does the given software protocol impose any actual "control" over user assets?
• Can the protocol be technically changed or upgraded;
• Is there a centralized operator or governance structure;
• And whether the current regulatory obligations can be technically enforced.

In light of these standards, the report believes that truly decentralized projects cannot be regulated like traditional intermediaries, and therefore a new approach is needed. Regulators should develop a flexible framework that achieves policy objectives while avoiding stifling innovation.

The report hopes that the "Clarity Act" can provide a foundation in this regard and urges Congress to swiftly enact the legislation. The report also suggests that, before the law is officially implemented, regulators should use their existing authority to take immediate action to provide greater regulatory transparency 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 encryption industry and presents policy recommendations on how U.S. banks can expand their participation in digital assets under prudent regulation. The report mentions the previous administration's move to cut off banking services to encryption companies and criticizes it, arguing that it was a misguided attempt to stifle the growth of a legitimate industry by pushing it away from the banking system.

The report points out that this top-down pressure has led many American cryptocurrency companies to face issues such as bank accounts being closed, resulting in consumer harm and the unexpected side effect of the growth of unregulated "shadow" markets.

The report emphasizes that banks can significantly improve efficiency and reduce costs by utilizing Blockchain technology. For example, integrating distributed ledgers into payment and settlement systems can achieve real-time payments and atomic settlement of transactions around the clock, thereby eliminating the limitations of business hours and reducing costs associated with central clearinghouses. Some large banks have been moving in this direction, testing their own digital dollar tokens or Blockchain platforms for bond settlement.

The recommendations presented in this section of the report include:

• Clarify the encryption-related activities permitted by banks and restore initiatives such as the Regulatory Innovation Office to provide guidance for banks in this field.
• Enhance the transparency of bank license approval and Federal Reserve account application processes to facilitate the entry of new businesses while avoiding unfairly blocking existing banks from serving cryptocurrency clients;
• Combine bank capital requirements with actual risks and formulate regulatory guidance for new risk exposures such as tokenized assets.

2.3 Stablecoins should be regarded as innovative digital tools and actively promoted.

This section focuses on stablecoins in the context of digital payment innovation and how they reinforce the dominance of the US dollar. Stablecoins are a type of value-stable encryption asset designed to maintain a 1:1 peg with fiat currencies like the US dollar. Due to their minimal price volatility, they effectively serve as digital cash within the cryptocurrency ecosystem.

The report assesses that the widespread use of stablecoins pegged to the US dollar can modernize payment infrastructure and help the United States escape its increasingly aging traditional payment networks. For example, using stablecoins for international remittances or securities settlements can achieve near-instant processing without intermediary banks and significantly reduce costs. This will also enhance the international influence of the US dollar. Currently, dollar-based stablecoins account for a significant share of global cryptocurrency trading volume, with a circulation scale reaching hundreds of billions of dollars. The report emphasizes that to lead this trend, the United States must establish a clear federal regulatory framework for stablecoins.

In this context, the report highlights the "Stablecoin Innovation Act" passed by the U.S. Congress this year, referred to as the "Genius Act". The Genius Act establishes a system for private dollar stablecoin issuers approved and regulated by the Federal Reserve; it prohibits the Federal Reserve from developing a central bank digital currency, thereby clearly favoring digital dollar innovation led by the private sector. The report praises the Genius Act for "incorporating a framework conducive to innovation into federal law" and strongly urges the Treasury Department and other relevant agencies to implement the act seriously and promptly.

The report also points out that it is crucial to address tax issues while establishing stablecoin regulations. According to current U.S. tax law, the definition of stablecoins is still unclear, and their tax treatment may vary depending on whether they are considered currency or property. The report notes that this ambiguity poses a burden on participants; therefore, once a federal stablecoin regulatory framework is in place, tax laws should be updated to clarify the classification of stablecoins, thereby eliminating uncertainty.

The core message of this section can be summarized as: "Actively promote stablecoins as a means of innovating the digital dollar, and firmly reject central bank digital currencies, as they threaten American freedom and financial stability." Regarding stablecoins, the report urges strict enforcement of the newly enacted Genius Act and suggests additional legislation as necessary to strengthen privacy protection and consumer safeguards.

The report also emphasizes that the United States should lead the establishment of global standards for stablecoins internationally and promote innovation in cross-border payments.

2.4 Guidelines must be established for illegal financial activities and taxation.

This section discusses the illegal financial risks associated with cryptocurrency and the measures to address them. The report begins by stating, "In order to embrace innovation while ensuring national security, we must modernize anti-money laundering regulations," and analyzes the loopholes in the current system.

Due to the anonymity, borderless nature, and real-time execution of cryptocurrency transactions, the report acknowledges that enforcing laws designed for traditional banking, such as the Bank Secrecy Act or "travel rule," faces challenges. For example, criminals may use decentralized exchanges or mixing services to repeatedly exchange or split funds, making transactions difficult to trace. The report cites specific cases, such as North Korean hacker groups abusing decentralized finance in 2022, and ransomware attackers demanding cryptocurrency payments, to illustrate that current anti-money laundering mechanisms need to be updated to address these new strategies.

At the same time, the report emphasizes multiple times that anti-money laundering and counter-terrorism financing enforcement must not be abused or deviate from the original intent of the law.