Cryptocurrency regulation is a developing area of law and policy that addresses the way in which digital assets are issued, traded, stored, and integrated into financial systems. Many proponents of regulation support the development of a framework that offers legal clarity, consumer protections and greater market legitimacy. Regulatory rules vary by country and continue to evolve as lawmakers respond to technological advances and new risks.
In the United States, the Commodity Futures Trading Commission (CFTC) retains primary jurisdiction over blockchain-based commodities, while the Securities and Exchange Commission (SEC) has authority over cryptocurrencies that qualify as securities and their exchanges. The SEC has brought several cases against major crypto platforms based on its view that these assets are securities. The SEC’s 2025 formation of a task force to establish what it calls a “sensible regulatory path” is an effort to address concerns that its enforcement actions lack the necessary legal clarity.
State-based legislation has also emerged, including the New York BitLicense regime that was first to provide a comprehensive crypto regulatory regime among major U.S. states and has since spawned similar laws in other states. New York’s regulatory framework includes a definition of virtual currency and a licensing process for firms operating a cryptocurrency exchange. In addition, the state’s tax code treats virtual currencies as property for tax purposes, resulting in capital gains when they are sold.
A number of federal bills have also been introduced, including the GENIUS Act, CLARITY Act and the Anti-CBDC Surveillance State Act, which were all passed the House and are awaiting consideration by the Senate. These bills include new provisions allowing the creation of stablecoins that are pegged to fiat currencies, require full reserve backing and mandate monthly audits and anti-money laundering compliance.
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