The digital asset ecosystem just received a major signal from the highest levels of U.S. government. On July 31, 2025, the White House released its latest Fact Sheet alongside a comprehensive report from the President’s Working Group (PWG) on Financial Markets, marking the administration’s clearest articulation yet of how it plans to regulate—and encourage—digital financial technology under Executive Order 14178.
This blog unpacks the key takeaways for founders, token projects, stablecoin issuers, and digital financial infrastructure platforms looking to align with America’s evolving digital asset strategy.
A National Strategy Rooted in Economic Competitiveness
The President’s Working Group Report identifies the central challenge: how to “maximize the potential” of U.S.-led financial innovation while enforcing strong safeguards against illicit finance, systemic risk, and regulatory arbitrage.
This new digital asset strategy is not just about reining in crypto—it’s about cementing U.S. leadership in next-generation financial infrastructure.
Notably, the report and fact sheet emphasize:
- Open financial architecture: Acknowledging the benefits of tokenized payments, programmable money, and 24/7 settlements.
- Resilient dollar-backed systems: Centering the U.S. dollar within stablecoin and central bank digital currency (CBDC) development.
- Guardrails for innovation: Prioritizing transparency, interoperability, and regulatory clarity—particularly around custody, AML/KYC, and consumer disclosures.
Key Recommendations from the July 2025 PWG Report
Based on the 52-page document and the fact sheet summary, the following recommendations are most relevant to startup and emerging tech players:
1. Stablecoin Licensing and Supervision
The PWG continues to support Congressional action (see the GENIUS Act) that would bring payment stablecoins under a federal charter with prudential supervision—ideally housed within an independent digital asset office at the Federal Reserve or OCC.
- Implication: Stablecoin projects targeting U.S. users will need to prepare for bank-like licensing, liquidity coverage ratios, and redemption rules.
2. Clarity on Custody and Intermediaries
The SEC, CFTC, and Treasury are tasked with finalizing unified guidelines around digital asset custody, especially in relation to broker-dealers, investment advisers, and clearing agencies.
- Implication: Founders building digital asset trading venues or custodial infrastructure should expect clearer standards—but also higher regulatory burdens—for security, segregation, and reporting.
3. Token Taxonomy and Functional Regulation
The report echoes the market’s call for Congress to create a fit-for-purpose framework that defines digital assets based on function rather than form—i.e., payment tokens, utility tokens, and security tokens.
- Implication: Startups may benefit from tailored treatment of non-security tokens and tokenized software credits, reducing fear of enforcement under vague securities rules.
4. Digital Dollar Development
EO 14178 directed the Treasury and Fed to evaluate the economic and geopolitical implications of a U.S. CBDC. The PWG now recommends pilot programs, privacy and surveillance impact assessments, and clear limits on programmable control.
- Implication: While a U.S. CBDC is still years away, infrastructure players can position for integration—particularly those enabling on/off ramps and CBDC-compatible wallets.
What’s New vs. Previous Executive Orders
Unlike earlier crypto-related EOs, which often focused on consumer protection and enforcement, EO 14178—combined with this July 2025 rollout—shifts the tone decisively toward strategic enablement. According to page 7 of the PWG report, the administration is now explicitly:
- Promoting tokenized markets as part of the national financial modernization strategy
- Encouraging interagency coordination with international regulatory counterparts
- Supporting research partnerships between the federal government and private digital asset firms
What Startups Should Do Now
If you’re building in or around tokenized finance, payments, or digital asset infrastructure, this is a clear signal: the U.S. is not banning digital assets—it’s building the rails to supervise and support them.
To position for success:
- Audit your compliance stack now with an eye toward federal chartering, AML readiness, and digital asset taxonomy.
- Prepare for interoperability—both between tokens and with the broader financial system.
- Engage early with regulators through sandbox or pilot frameworks as they begin forming under Treasury or Fed-led initiatives.
Final Thoughts
We are entering a new era of rules-based innovation in U.S. digital financial markets. EO 14178 and the July 2025 PWG recommendations offer the most comprehensive blueprint yet.
The window is now open for startups to shape the next generation of U.S.-backed digital asset infrastructure—if they build with compliance in mind.
At Veritas Global, we work with leading founders and investors to navigate these shifts—from stablecoin licensing to token structuring and fintech partnerships with regulators.
Need a roadmap through this evolving landscape? Contact us to ensure your venture is built to lead, not lag, in the U.S. digital asset revolution.
📚 Visit our Insights Library for more analysis on the GENIUS Act, stablecoin regulation, and EO 14178 implementation.
