In order to enhance transparency and supervision, US regulators are preparing to redefine “money” to encompass cryptocurrencies and enforce the same reporting regulations as traditional cash.
Federal agencies in the United States are preparing to redefine the term “money” to encompass cryptocurrencies under the same reporting requirements as traditional currency. The objective of this regulatory change is to guarantee that financial institutions regard cryptocurrencies in the same manner as fiat currency when it comes to reporting domestic and cross-border transactions.
The US Department of the Treasury recently published its semiannual regulatory agenda, which delineates its intentions to enhance supervision of digital assets. The Federal Reserve and the Financial Crimes Enforcement Network (FinCEN) are among the key agencies spearheading initiatives to revise the definition of “money” in the Bank Secrecy Act (BSA). Their objective is to guarantee that convertible virtual currencies, which serve as legal tender substitutes, are subject to the same reporting regulations as conventional money. As well as digital assets with legal tender status, the new regulations will encompass central bank digital currencies (CBDCs).
This action is indicative of a more extensive initiative by the United States government to confront the obstacles presented by the proliferation of cryptocurrencies. September 2025 is the anticipated deadline for the final proposed rules, underscoring the necessity of revising financial regulations to remain in step with the digital economy.
The inclusion of cryptocurrencies in the definition of money is a result of other substantial government initiatives. Federal authorities recently relocated approximately 10,000 Bitcoin associated with an outdated Silk Road seizure, thereby emphasizing the significance of monitoring and regulating digital assets.
Concurrently, the Department of Justice is revising its policies to address crimes committed with the assistance of artificial intelligence (AI). The Department of Justice (DOJ) urged the United States Sentencing Commission to increase the penalties for crimes related to artificial intelligence (AI) on August 7, as a result of the increasing concern regarding AI’s involvement in illicit activities.
The regulatory environment for cryptocurrencies has been further complicated by some recent legal developments. In June 2024, the US Supreme Court invalidated the Chevron doctrine, which had previously granted agencies such as the Securities and Exchange Commission (SEC) substantial discretion in interpreting statutes. This decision has the potential to undermine the SEC’s authority over crypto regulations, thereby introducing uncertainty regarding future policies.
Additionally, cryptocurrency exchangers will be required to report transactions and maintain detailed records beginning in 2026, as a result of new tax regulations implemented by the US Treasury and IRS in May 2024. This is a component of a more extensive initiative to maintain greater control over digital assets.
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