A concurrent asynchronous USB 2.0 data stream destuffer and separator with variable-width bit-wise memory controller is described. A parallel stream bit destuffer module identifies in parallel one or more stuffed bits in a decoded data field of a received data stream using a six-bit sliding window. The stuffed bits are bits that were inserted into the received USB data stream by a transmitter to force data transitions in the received USB data stream. A data separator module separates the one or more stuffed bits from a plurality of valid data bits in the decoded data field. A memory module generates an incremental pointer value representative of the number of valid bits and writes the plurality of valid data bits from the decoded data field into a variable sized bit-wise memory structure.