Cryptocurrency Regulation in the US: Current Laws and Planned Initiatives
1. Existing laws and regulatory authorities
In the US, cryptocurrencies are regulated by several agencies that apply existing laws to digital assets:
a. SEC (Securities and Exchange Commission)
— Howey Test: The SEC classifies many tokens as securities if they meet the criteria of an investment contract (e.g. cases against Ripple, Telegram).
— Actions against exchanges and projects:
- Lawsuits against Binance, Coinbase (2023) for trading unregistered securities.
- Ban on staking services for retail investors (example: Kraken case, 2023).
b. CFTC (Commodity Futures Trading Commission)
— Classifies Bitcoin and Ethereum as commodities (2015 decision).
— Regulates cryptocurrency derivatives (futures, options).
c. FinCEN (Financial Crimes Enforcement Network)
— Requires crypto exchanges and services to comply with AML/KYC (Bank Secrecy Act rules).
— Mandatory registration as Money Services Businesses (MSB).
IRS (Internal Revenue Service)
— Cryptocurrencies are considered property: taxation on sale, mining, staking.
— Form 1040 has included a question on crypto assets since 2019.
d. Other laws
— Travel Rule: Exchanges are required to share sender/recipient details for transactions over $3,000.
— Tax requirements in the Infrastructure Act (2021): Crypto brokers (including miners and validators) must report transactions to the IRS.
2. Bills under development
a. Lummis-Gillibrand Act (2022–2023)
— Proposes to divide regulatory powers:
- The SEC regulates security tokens.
- CFTC regulates commodity tokens (BTC, ETH) and spot markets.
— Introduces the concept of “auxiliary assets” (which are not securities).
— Sets the rules for stablecoins and DeFi.
б. FIT21 Act (Financial Innovation and Technology for the 21st Century Act)
— Clarifies the jurisdiction of the SEC and CFTC.
— Allows projects to issue tokens without registering them as securities if the network is decentralized enough.
c. Regulation of stablecoins
— Clarity for Payment Stablecoins Act: Requires issuers of stablecoins (e.g. USDT, USDC) to have banking licenses and maintain reserves.
— The SEC and the Treasury see stablecoins as a threat to financial stability (example: ban on Meta’s Diem service).
g. CBDC (Digital Dollar)
— The Fed is exploring the possibility of launching a CBDC, but the project faces resistance due to privacy concerns.
3. Trends and forecasts for 2024–2025
1. Tightening controls on DeFi and staking:
— The SEC may require DeFi platforms to be registered as exchanges.
— Restrictions for retail investors in staking and lending.
2. Tax changes:
— Clarification of rules for NFTs, metaverses and GameFi.
— Combating tax evasion through crypto transactions.
3. Licensing of crypto businesses:
— States (for example, New York with BitLicense) are tightening requirements.
4. Global Impact:
— The US is seeking to set standards for other countries through the FATF (AML Recommendations).
4. Problems and criticism
— Uncertainty: Multiple regulators create confusion (example: Ethereum's status after switching to PoS).
— Suppression of innovation: Startups are leaving for Singapore, the EU or the UAE due to strict rules.
— Political differences: Republicans favor soft regulation, Democrats favor strict controls.
Summary
By 2025, the US will likely pass a comprehensive cryptocurrency law (similar to Lummis-Gillibrand) that:
- Clearly separate the powers of the SEC and CFTC.
- Regulates stablecoins and DeFi.
- Will strengthen taxation and AML requirements.
Investors and projects should prepare for increased compliance costs and focus on jurisdictions with clear rules.