Key takeaways
- U.S. agencies want to treat cryptocurrencies like traditional money for reporting purposes.
- Final cryptocurrency regulations are expected by September 2025.
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Several leading U.S. federal agencies are collaborating to revise the definition of “money” to strengthen reporting requirements for financial institutions handling domestic and cross-border cryptocurrency transactions.
The U.S. Treasury Department’s semiannual regulatory agenda, released on August 16, reveals an upcoming federal effort to level the regulatory playing field for cryptocurrencies and traditional fiat currencies. The Board of Governors of the Federal Reserve System and the Financial Crimes Enforcement Network intend to revise the meaning of the term “money” as used in the Bank Secrecy Act.
Under the plan, the agencies want to ensure that the rules apply to transactions involving convertible virtual currency, defined as a medium of exchange that has a value equivalent to or serves as a substitute for currency but is not legal tender. The proposal would also extend reporting requirements to digital assets that are legal tender, including central bank digital currencies.
Final notice of the proposed rulemaking is currently scheduled for September 2025, subject to approval. The move comes as the U.S. government recently transferred approximately 10,000 bitcoins linked to an Aug. 14 raid on Silk Road.
Beyond cryptography, the Justice Department is actively amending regulations and legal mandates related to artificial intelligence. On August 7, the department asked the U.S. Sentencing Commission to update its guidance to provide additional penalties for crimes committed using AI. These recommendations are intended to go beyond established guidelines and apply to any crime aided or abetted by simple algorithms.
In June, the U.S. Supreme Court struck down the Chevron Doctrine, significantly affecting the SEC’s regulatory authority over crypto policies.
In May, the U.S. Treasury and IRS introduced new tax regulations for cryptocurrency brokers, requiring transaction reporting and record keeping of token costs starting in 2026.
Earlier this month, Senators Wyden and Lummis criticized the Justice Department’s treatment of crypto software services as tantamount to unlicensed money transmission businesses, highlighting potential conflicts with the First Amendment.
This regulatory development reflects the growing recognition of cryptocurrencies and digital assets as important components of the financial system. By aligning reporting requirements for cryptocurrencies with those for traditional currencies, regulators aim to improve transparency and combat potential illicit activities in the crypto space.
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