Crypto in the United States has no single rulebook. Laws written for stocks, futures, wire transfers and banks each reach part of the market, so the agency that matters depends on what a token is and who is handling it. This guide maps those agencies, dates the policy shifts of 2025 and 2026, follows the market-structure bills through Congress, and ends with what all of it means for someone who owns crypto. For the basics of the asset class, start at the crypto hub.
Who regulates crypto in the US?
Several agencies share the job, and which one applies depends on whether a token or activity counts as a security, a commodity, a money transfer or a bank service.
| Regulator | What it covers in crypto | What it means for an investor |
|---|---|---|
| SEC | Tokens that are securities or sold under investment contracts, and the brokers, exchanges and funds that handle them, including spot crypto exchange-traded products | Disclosure and anti-fraud rules apply; SIPC can apply at a member broker when the asset is a security |
| CFTC | Futures, options and swaps on crypto commodities such as bitcoin, leveraged retail trades, and fraud or manipulation in spot markets | Regulated futures venues exist, but most spot platforms have no federal registration |
| FinCEN (Treasury) | Anti-money-laundering rules for exchanges, kiosks, hosted wallets and other money transmitters | Identity checks, suspicious activity reports and Travel Rule records on transfers of $3,000 or more |
| OCC | National banks and national trust banks that hold crypto, and federal licensing of stablecoin issuers | A bank custodian is supervised, but custody is not an insured deposit |
| Federal Reserve | State member banks, bank holding companies and the stablecoin subsidiaries of its banks | Shapes which banks will serve crypto firms |
| FDIC | Deposit insurance and supervision of state nonmember banks | Deposit insurance never covers crypto, even at an insured bank |
| IRS | Taxes crypto as property and runs broker reporting on Form 1099-DA | Selling, swapping or spending crypto can be taxable |
| States | Money transmitter licenses, New York's BitLicense and California's Digital Financial Assets Law | Licensing, capital and complaint rules vary by state |
The gap in the middle is the one Congress keeps trying to close. No federal regime registers platforms that trade non-security tokens for cash without leverage, so most US exchanges answer to FinCEN and state regulators rather than being supervised like a stock exchange.
How does the SEC decide which tokens are securities?
It applies the Howey test: a token sold with the promise of profits from a promoter's work is part of an investment contract, which is a security.
The Supreme Court's 1946 Howey decision defines an investment contract as an investment of money in a common enterprise with an expectation of profits from the efforts of others. For years the SEC applied that test case by case, mostly through enforcement, which critics inside and outside the agency called regulation by enforcement. Its interpretation of March 17, 2026, effective March 23 and joined by the CFTC, instead sorts crypto assets into five categories: digital commodities, digital collectibles, digital tools, stablecoins and digital securities.
The first three groups are not securities in themselves. Stablecoins may or may not be, depending on their features, and digital securities, meaning tokenized versions of stocks, bonds and other securities, always are. The release names 16 digital commodities, among them bitcoin, ether, solana, XRP, cardano and dogecoin, each of which underlies a futures contract on a CFTC-regulated exchange. A non-security token can still be sold under an investment contract, for example when a developer raises money by promising to build the network, and the release explains how such a contract can later end.
Rule proposals followed. On August 18, 2026 the SEC proposed Regulation Crypto Assets, with one exemption for offerings of up to $5 million over four years, another for up to $75 million a year, and a conditional safe harbor from the investment contract definition. On October 1 it proposed custody rules that would let investment advisers and funds hold crypto with qualifying state trust companies or, in some cases, themselves. Both were still proposals on November 2, 2026.
What does the CFTC oversee in crypto?
The CFTC regulates futures, options and swaps on crypto commodities such as bitcoin and ether, leveraged retail trades, and fraud or manipulation in the spot market.
What it lacks is the power to register and supervise exchanges that sell those commodities for cash without leverage. Its recent steps work around that gap. On December 4, 2025, listed spot crypto products began trading on CFTC-registered futures exchanges for the first time. In June 2026 it set out its approach to perpetual contracts alongside an order permitting one on bitcoin, and on October 13, 2026 it published an advance notice on fit-for-purpose rules for crypto transactions and markets under the Commodity Exchange Act's provision on leveraged retail trades. On January 29, 2026, the SEC and CFTC chairs turned Project Crypto, the SEC's rule-modernization effort, into a joint program.
What changed in federal crypto policy in 2025?
Washington moved from policing crypto mainly through lawsuits to writing guidance, starting with a January 2025 executive order and a new SEC task force.
| Date | Who | What changed |
|---|---|---|
| January 21, 2025 | SEC | Crypto Task Force formed, led by Commissioner Hester Peirce |
| January 23, 2025 | White House | Executive Order 14178 created the President's Working Group on Digital Asset Markets |
| January 23, 2025 | SEC staff | Staff Accounting Bulletin 122 withdrew SAB 121, which had made firms safeguarding customer crypto carry it on their balance sheets |
| February 20, 2025 | SEC | Cyber and Emerging Technologies Unit replaced the Crypto Assets and Cyber Unit |
| February 27, 2025 | SEC | Dismissed its civil case against a major US exchange |
| March 2025 | OCC and FDIC | Banks no longer needed prior approval or notice for permissible crypto activities |
| April 10, 2025 | Congress | Public Law 119-5 voided the IRS rule extending broker reporting to decentralized finance |
| July 18, 2025 | Congress | GENIUS Act signed into law |
| July 30 and 31, 2025 | White House; SEC | Working Group report published; SEC launched Project Crypto |
| September 17, 2025 | SEC | Generic listing standards let exchanges list qualifying commodity-based trusts, including crypto funds |
| December 4, 2025 | CFTC | Listed spot crypto trading began on registered futures exchanges |
| March 17, 2026 | SEC with CFTC | Interpretation sorting crypto assets into five categories |
| August 18, 2026 | SEC | Regulation Crypto Assets proposed |
| October 21, 2026 | OCC | Final GENIUS Act rule for the stablecoin issuers it will license |
The enforcement shift has limits. The SEC said the exchange dismissal rested on its policy reset, not the merits, and did not reflect its position on any other case, and the new unit's priorities include fraud involving blockchain technology and crypto assets. Staff statements in 2025 said meme coins, proof-of-work mining, certain fully reserved dollar stablecoins and protocol staking generally fall outside the securities laws, but staff statements are not rules and can be withdrawn.
How did bank regulators change their stance on crypto?
They withdrew guidance from 2021 to 2023 that had made banks seek approval or give notice before crypto work, or warned them away from it.
The OCC's Interpretive Letter 1183 of March 7, 2025 confirmed that national banks may offer crypto custody, carry out stablecoin-related activities and use blockchains for payments without first seeking approval, and on March 20 the OCC dropped reputation risk from its exams; the Fed followed on June 23. The FDIC replaced its prior-notification requirement on March 28, 2025, telling banks they may engage in permissible crypto activities if they manage the risks. By April 2025 all three agencies had withdrawn the joint statements of January and February 2023 that cautioned banks about crypto exposure, and in April the Fed withdrew two supervisory letters on crypto and dollar-token activities.
Charters followed. In December 2025 the OCC conditionally approved national trust bank charters for five crypto firms, among them the stablecoin issuers Circle and Paxos. None of this extends deposit insurance to crypto: a coin held by a bank custodian is still not a deposit, as the comparison of FDIC and SIPC coverage explains.
What do FinCEN and the IRS require?
FinCEN treats crypto exchanges, kiosks and hosted wallet services as money transmitters bound by anti-money-laundering rules, and the IRS taxes crypto as property.
Under FinCEN's 2019 guidance, a business that accepts and transmits crypto for customers is a money services business. It must register with FinCEN within 180 days of starting, run a written anti-money-laundering program, file suspicious activity reports and, for transfers of $3,000 or more, record and pass on sender and recipient details under the Funds Travel Rule. That is why platforms ask for identification. A person using an unhosted wallet for their own purchases is not a money transmitter.
On taxes, selling, swapping or spending crypto can produce a capital gain or loss, and brokers now report sales on Form 1099-DA: Gross proceeds for sales from January 1, 2025; cost basis for covered assets bought from January 1, 2026 in a custodial account. Congress voided the IRS rule that would have extended broker reporting to decentralized finance platforms, through Public Law 119-5, signed on April 10, 2025. The Form 1099-DA guide covers the forms line by line.
How do states regulate crypto businesses?
States license crypto exchanges and custodians, usually under money transmission or trust laws, and New York and California run licensing regimes written for crypto.
New York's regulation 23 NYCRR Part 200, the BitLicense, dates from June 2015, and firms can instead hold a New York limited purpose trust charter with approval for crypto activities. California's Digital Financial Assets Law was signed on October 13, 2023, and since July 1, 2026, after a one-year delay, companies that exchange, store or transfer crypto for Californians have needed a license or a completed application. States also gain a role under the GENIUS Act, which lets them license stablecoin issuers with up to $10 billion outstanding.
For now, state licenses are the main source of capital, bonding and complaint rules for US exchanges. The Nationwide Multistate Licensing System's public lookup shows which state licenses a company holds, which is a quick first check before opening an account.
Where does the CLARITY Act stand?
Stalled in the Senate: the House passed it in July 2025, but a September 2026 Senate vote to begin debate fell 11 votes short of the 60 needed.
In full, the bill passed the House 294 to 134 on July 17, 2025, but a Senate cloture vote to take it up failed 49 to 50 on September 15, 2026; it had not become law as of November 2, 2026 (Congress.gov, as of Nov 2, 2026). Its path so far:
| Step | Date | What happened |
|---|---|---|
| House | July 17, 2025 | H.R. 3633 passed. It would create CFTC registration for exchanges, brokers and dealers in digital commodities, require qualified custodians, and add a mature blockchain test for token offerings |
| Senate Agriculture Committee | January 29, 2026 | Approved the Digital Commodity Intermediaries Act, the CFTC half of the Senate effort, 12 to 11 on party lines; reported as S. 3755 on February 2 |
| Senate Banking Committee | June 1, 2026 | Reported its own version as a full substitute for H.R. 3633 |
| Senate floor | September 15, 2026 | Cloture on the motion to proceed failed 49 to 50; a motion to reconsider was entered, so the bill can return |
The Banking Committee's version reaches further than the House text on several retail points. It adds an SEC disclosure regime for ancillary assets, network tokens whose value still depends on the efforts of the team that launched them, and bars platforms from paying deposit-like interest on stablecoin balances while allowing rewards tied to activity, a debate the guide to stablecoin yield versus bank interest follows. It also bars federal agencies from restricting self-custody for lawful purposes and states that SIPC protection does not extend to digital commodities.
The calendar is the main constraint: the 119th Congress ends on January 3, 2027, and any bill not enacted by then has to start over.
How does the GENIUS Act fit in?
It is the first federal regulatory regime for a type of crypto asset: licensing, reserve and disclosure rules for dollar stablecoins, effective January 18, 2027.
The basics: Signed July 18, 2025 (Public Law 119-27); takes effect January 18, 2027 (Congress.gov, as of Nov 1, 2026). Only permitted issuers may issue payment stablecoins to US users, every coin needs at least a dollar of cash or short Treasuries behind it, issuers may not pay holders interest, and holders get first claim on the reserves if an issuer fails. Section 17 adds that a payment stablecoin from a permitted issuer is neither a security nor a commodity, which also places it outside SIPC.
The GENIUS Act guide covers the details, how stablecoins work explains the coins themselves, and USDC vs USDT shows where the two largest coins stand. Live supply figures are on the top stablecoins page.
What do these changes mean for retail investors?
More products and clearer labels, but no new safety net: what protects you still depends on whether you hold a security, a commodity or a stablecoin, and where.
Worked example: $10,000 of bitcoin held three ways
An investor puts $10,000 into bitcoin, and the price later falls 40%. Each route loses about $4,000 on paper; the routes differ in what else can go wrong.
- Spot bitcoin ETF shares at a brokerage. The shares are SEC-registered securities, so if the brokerage fails and shares go missing, SIPC protects up to $500,000 per customer, including up to $250,000 in cash. SIPC does not cover the 40% fall, and the fund charges a yearly fee: a 0.25% fee, for example, costs $25 a year on $10,000.
- Coins in an account at a licensed exchange. The platform must register with FinCEN and hold state licenses, but neither SIPC nor the FDIC covers the coins. If it fails, customers wait on a bankruptcy court; FTX customers eventually received 105% of allowed customer claims, or 120% for convenience claims of $50,000 or less, as of the fifth distribution on July 31, 2026, but in dollars at November 2022 prices, when the estate valued bitcoin at $16,871.63, far below its later price.
- Self-custody in a personal wallet. No intermediary can fail or freeze the coins, and FinCEN's rules do not apply to someone using an unhosted wallet for their own purchases, but a lost seed phrase means the $10,000 is gone and no regulator can recover it.
The other changes cut both ways:
- Fewer registration cases. More tokens trade without securities-style disclosure, so the research burden sits with the buyer, while fraud remains illegal and is still prosecuted.
- More funds. Generic listing standards let exchanges list qualifying crypto funds without a separate SEC approval for each, as bitcoin ETFs vs owning bitcoin explains.
- Banks back in. Banks may custody crypto and issue stablecoins through subsidiaries, which may bring familiar names into the market, but a bank's involvement does not make crypto an insured deposit.
- Stablecoin rules. From January 18, 2027 only permitted issuers may issue dollar stablecoins in the US, and from July 18, 2028 US platforms may offer only coins from permitted or approved foreign issuers, which matters for anyone sending money with stablecoins.
- Platform custody. What happens to coins when an exchange fails is still decided case by case, as the guide to whether crypto is safe on an exchange explains.
What are the risks of relying on today's crypto rules?
Much of the new approach rests on staff statements, interpretations and exemptions that a future SEC or CFTC can withdraw without a vote in Congress.
- Reversible guidance. The 2025 changes themselves reversed earlier guidance, and later officials can reverse them in turn.
- Unfinished law. If CLARITY expires with this Congress, most spot platforms stay without federal supervision.
- Gaps in coverage. FDIC insurance never covers crypto, SIPC covers only securities at member brokers, and state rules differ.
- Scams. Clearer rules have not slowed crypto fraud: complaints to the FBI's Internet Crime Complaint Center showed $11.37 billion lost across 181,565 complaints in 2025, a 22% rise in losses from 2024, and crypto scams shows how the common ones work.
- Offshore platforms. US rules do little for customers of foreign platforms not licensed to serve them.
- Price. Regulation does not change volatility: crypto is volatile and can lose most or all of its value.
Clearer categories make it easier to know which agency to call, not whether an investment will hold its value. Checking a platform's licenses, the asset's category and the protection that comes with it is the practical way to use what Washington has changed.