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The Executive Order 14178 aims to enhance U.S. leadership in digital financial technology by promoting the growth of digital assets and blockchain technology. It supports the development of stablecoins while preventing the introduction of Central Bank Digital Currencies (CBDCs) in the U.S. The order revokes previous guidelines on digital assets and establishes a President's Working Group to create a new regulatory framework for the sector. It ensures people's ability to use digital networks freely and emphasizes protection against private monetary alternatives to the U.S. dollar.

The Treasury Department and IRS have issued final regulations that update the rules for classifying transactions involving digital content and cloud services. These updates help clarify how transactions like software downloads and streaming services are taxed, especially in international contexts. The new rules replace the previous "de minimis" standard with a "predominant character" rule to simplify determining the main purpose of such transactions. Examples in the regulations provide further guidance, and while the new rules are effective for tax years starting on or after January 14, 2025, businesses can also choose to apply them to earlier years.

The Securities and Exchange Commission (SEC) has issued a statement and is seeking public comments on the safekeeping of digital asset securities by broker-dealers. They highlight the need for innovation in applying existing protection rules to digital assets, which have unique risks like fraud and theft. The SEC proposes a five-year period during which broker-dealers who follow specific guidelines won't face enforcement action if they can show they've taken reasonable steps to control and secure digital asset securities. This initiative aims to balance investor safety with the advancement of the digital asset market.

On December 23, 2020, FinCEN proposed new rules for banks and money services businesses about how they handle transactions with virtual currencies or digital assets that have legal tender status. These rules focus on transactions over $10,000 and involve specific types of digital wallets. Initially, feedback was allowed until January 7, 2021, but the comment period was reopened for more input. This document further extends the deadline for comments to March 29, 2021, allowing more time for feedback on the proposed rules.

The Financial Crimes Enforcement Network (FinCEN) published a proposed rule on December 23, 2020, aimed at implementing new reporting and recordkeeping requirements for transactions involving convertible virtual currency (CVC) and legal tender digital assets (LTDA). These requirements are part of efforts to address illicit financial activities such as money laundering and the financing of terrorism. The proposal includes mandatory reporting for transactions over $10,000 involving these assets, as well as maintaining records for transactions over $3,000. In response to public feedback, FinCEN has reopened the comment period to gather more input on these proposals and their implications for financial institutions, technology, and regulatory compliance.

The Consumer Financial Protection Bureau (CFPB) has issued a final rule to identify larger participants in the market for digital consumer payment apps, like digital wallets and payment apps used for personal payments. A nonbank must manage at least 50 million transactions annually and not be a small business to qualify as a larger participant and fall under CFPB supervision. This new rule, effective January 9, 2025, will not add new consumer protection obligations but will help the CFPB monitor compliance with federal consumer financial laws and assess risks to consumers. The rule follows a public comment phase and consultation with other federal agencies.

The Treasury Department and the Internal Revenue Service (IRS) have finalized rules for reporting digital asset transactions performed by brokers. These new regulations, effective January 1, 2027, require brokers who regularly facilitate digital asset sales, like those in decentralized finance (DeFi), to provide forms reporting gross proceeds from these transactions. The rules primarily apply to trading front-end service providers, who are best positioned to report on such transactions due to their close interaction with customers. The regulations aim to enhance tax compliance by ensuring digital asset transactions are reported similarly to traditional financial trades.

The Federal Communications Commission (FCC) has responded to a court order by reviewing how its decision to reclassify broadband internet access affects public safety, pole attachments, and support for low-income consumers through the Lifeline program. The FCC decided to maintain the classification of broadband as an information service, emphasizing the benefits of regulatory certainty and innovation, despite some concerns about its impact on public safety and infrastructure. They concluded that the advantages of encouraging investment and innovation outweigh potential drawbacks, ensuring that the Lifeline program can still support broadband access for low-income Americans through carefully defined legal authority. Additionally, adjustments will be made to Lifeline rules, removing broadband as a standalone supported service while continuing to fund it as part of voice-broadband bundles.

The Federal Communications Commission (FCC) is seeking public and federal agency comments on its information collection standards as part of its effort to reduce paperwork burdens, in compliance with the Paperwork Reduction Act. This includes proposals to improve the quality and clarity of collected information and reduce the burden on small businesses. One of the key areas under review is the modification of rules for FM digital broadcasting. These changes aim to facilitate greater coverage for digital FM radio by allowing asymmetric sideband operations with different power levels, simplifying notification procedures, and potentially reducing costs for licensees.

The Federal Communications Commission (FCC) is seeking public comments on a proposal to reduce the paperwork burden required by the Paperwork Reduction Act of 1995 and the Small Business Paperwork Relief Act of 2002. This proposal focuses on simplifying the process for digital FM radio stations to report changes and requests regarding their operations, such as using different power levels on their digital sidebands, through an updated form 2100, Schedule 335-FM. The updated rules also encourage digital FM stations to operate with greater flexibility by allowing them to notify the FCC instead of applying annually for experimental authorization, which reduces regulatory barriers and encourages more stations to adopt these digital broadcasting methods. The FCC aims to alleviate the information collection burden, especially for small businesses with fewer than 25 employees.