Today, the President's Working Group on Digital Assets published its comprehensive report recommending its regulatory and legislative proposals. Here are my key takeaways.

The Working Group recognizes that the ability to freeze transactions should sit squarely with stablecoin issuers and not the blockchains which they exist on. This is an important distinction and one that protects developers. Simply put: nobody is telling internet service providers (ISPs) to turn off the internet given the existence of internet crime. Blockchain networks should be respected the same.

As I've written before, stablecoins won't replace existing financial systems, but instead will converge with the existing financial frameworks. The Working Group sees this reality very clearly. There's a unique opportunity here for networks like @PlasmaFDN to serve as the blockchain in the "Stablecoin Sandwich" diagram the Working Group outlines below.

This is my favorite takeaway from the report: the Working Group clearly understands and respects the importance of privacy and civil liberties. One example is that the Working Group references using ZK proofs to make certain attestations without giving away personal information. This is something I wrote about previously and am excited to see how projects will implement this technology.

Politics aside, seven months ago the U.S. had an administration that treated the entire digital asset ecosystem as if we were criminals. Today we have an official White House report discussing ZK proofs. This is an incredible change of pace; the foundations of the house are being built in front of us.

Highly recommend that you read the report if you're interested in understanding how the White House is approaching the regulation of digital assets, stablecoins and related ecosystems in the years to come.