Comprehensive Overview of Cryptocurrency Regulations in the United States (2025)
In 2025, the U.S. has made significant strides in crypto regulation, marking a shift from years of ambiguity to a more structured approach. This transformation is exemplified by the enactment of the GENIUS Act, the first comprehensive federal legislation governing cryptocurrency, particularly stablecoins.
The GENIUS Act establishes a federal regulatory framework for stablecoins, imposing requirements such as maintaining 1:1 reserves of highly liquid assets, monthly disclosures, and compliance with anti-money laundering laws under the Bank Secrecy Act. Issuers must obtain regulatory approval or a charter and are supervised by several federal agencies including the Office of the Comptroller of the Currency, the Federal Reserve Board, and the FDIC, alongside state regulators.
Alongside the GENIUS Act, two other major bills—the CLARITY Act and the CBDC Anti-Surveillance State Act—have been passed or are progressing through Congress. The CLARITY Act aims to transfer regulatory jurisdiction over most digital assets from the Securities and Exchange Commission to the Commodity Futures Trading Commission and sets clearer rules for crypto exchanges, brokers, and dealers. The CBDC Anti-Surveillance State Act prohibits the Federal Reserve from issuing a Central Bank Digital Currency without congressional approval, addressing privacy concerns.
These legislative measures together provide clearer oversight, compliance requirements, and consumer protections for the digital asset industry. However, stablecoins remain uninsured by the federal government, leaving holders exposed to insolvency risks despite the increased regulatory clarity.
Entities engaged in the exchange, transfer, or custody of cryptocurrencies are typically classified as Money Services Businesses (MSBs) and must register with the Financial Crimes Enforcement Network (FinCEN). For custodians, applying for Qualified Custodian status is necessary if holding digital securities, and the entity must meet certain standards.
For trading platforms (ATS or exchange), applying to register as an ATS requires filing Form ATS and registering as a broker-dealer with FINRA (via Form BD). For a full national securities exchange license, submit a Form 1 application and follow the SEC rulemaking and approval process.
The Securities and Exchange Commission (SEC) regulates businesses dealing with financial instruments classified as securities under U.S. law, including certain digital assets. Token issuers must assess token classification using the Howey Test and register via Form S-1 for public offerings or use an exemption.
The Commodity Futures Trading Commission (CFTC) regulates businesses involved with commodities and derivatives related to digital assets under the Commodity Exchange Act (CEA). FCMs (e.g., futures platforms) must register with the National Futures Association (NFA), submit Form 7-R via the NFA’s ORS portal, designate a compliance officer, provide proof of capital and operational readiness, and undergo background checks. CPOs and CTAs must register through the NFA and provide regular financial and investor reports. Swap dealers must register with the CFTC and NFA and establish robust compliance, documentation, and margin procedures.
Moreover, the President's Working Group on Digital Asset Markets is responsible for developing a federal regulatory framework for digital assets, including stablecoins, and evaluating the creation of a strategic national digital assets stockpile. The Office of Foreign Assets Control (OFAC) mandates compliance with U.S. sanctions programs, requiring companies to screen clients and counterparties against designated lists.
For investment advisers, registration requires using the SEC's Investment Adviser Registration Depository (IARD), filing Form ADV, and establishing a compliant business structure. Such entities must implement comprehensive Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) programs, conduct customer identification procedures (KYC), submit Suspicious Activity Reports (SARs), and comply with the Travel Rule.
The U.S. government's efforts in 2025 reflect its intent to foster innovation while managing risks, with growing interest in setting up regulatory sandboxes that allow for controlled experimentation with new technologies and business models. These developments mark a turning point in the digital asset industry, moving away from inconsistent enforcement actions towards structured oversight. However, ongoing regulatory development and global coordination efforts are necessary to address remaining gaps in consumer protection and regulatory coverage.
- The passage of the GENIUS Act marks a significant shift in U.S. cryptocurrency regulation, establishing a federal framework for stablecoins that holds issuers accountable to strict reserving requirements, disclosures, and anti-money laundering laws.
- The CLARITY Act aims to streamline digital asset regulations by transferring regulatory jurisdiction over most digital assets from the Securities and Exchange Commission to the Commodity Futures Trading Commission, setting clearer rules for crypto exchanges, brokers, and dealers.
- In addition, the CBDC Anti-Surveillance State Act was passed, which prevents the Federal Reserve from issuing a Central Bank Digital Currency without congressional approval, addressing privacy concerns within the digital asset industry.
- As a result, businesses dealing with digital assets now face increased regulatory oversight, compliance requirements, and consumer protections, with entities involved in the exchange, transfer, or custody of cryptocurrencies classified as Money Services Businesses and regulated by the Financial Crimes Enforcement Network.
- To engage in the trading of digital securities, platforms must register as an Alternative Trading System or exchange and adhere to strict registration and compliance protocols set forth by the Securities and Exchange Commission and Financial Industry Regulatory Authority.
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