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US regulatory framework

Who regulates crypto in the United States

No single agency owns US crypto regulation. Oversight is split across five federal regulators, multiple state regimes, and a stack of pending federal bills. This directory maps the bodies whose rules and enforcement actions move markets.

5 federal regulators 4 state regimes 4 pending bills
§01 · FEDERAL

Federal regulators

S

SEC

Securities and Exchange Commission

Securities markets, tokens deemed investment contracts

Asserts jurisdiction over crypto tokens that meet the Howey test for investment contracts. Has brought enforcement against major exchanges over unregistered securities offerings and the listing of allegedly unregistered securities.

Key cases & notices

  • · SEC v. Coinbase (No. 23-3202, filed June 2023; appeal proceeding 2024)
  • · SEC v. Binance
  • · Kraken staking settlement (Feb 2023)
  • · SEC v. Ripple Labs
www.sec.gov
C

CFTC

Commodity Futures Trading Commission

Crypto commodities and derivatives

Designates Bitcoin and Ether as commodities. Oversees CME-listed bitcoin and ether futures, plus enforcement against fraudulent or manipulative conduct in spot markets when derivatives are implicated.

Key cases & notices

  • · CFTC v. Binance & CZ (Mar 2023)
  • · CFTC v. FTX / SBF
  • · CFTC action against Voyager
www.cftc.gov
F

FinCEN

Financial Crimes Enforcement Network

AML, BSA, and money services business rules

Treats crypto exchanges and most custodial wallet operators as money service businesses (MSBs) under the Bank Secrecy Act. Enforces SAR/CTR filings, KYC obligations, and the Travel Rule for transfers above $3,000.

Key cases & notices

  • · FIN-2013-G001 (virtual currency guidance)
  • · FIN-2019-G001 (CVC application of FinCEN regulations)
  • · Bittrex 2022 enforcement ($24M penalty)
www.fincen.gov
O

OCC

Office of the Comptroller of the Currency

National bank crypto custody and stablecoin reserves

Issued the July 2020 interpretive letter permitting national banks to provide custody for crypto assets. Subsequent letters clarified bank participation in stablecoin reserves and independent node verification networks.

Key cases & notices

  • · Interpretive Letter 1170 (custody)
  • · Interpretive Letter 1172 (stablecoin reserves)
  • · Interpretive Letter 1174 (INVN)
www.occ.gov
I

IRS

Internal Revenue Service

Federal tax treatment of crypto

Treats cryptocurrency as property under Notice 2014-21. Sales, swaps, and crypto-funded purchases are taxable events reported on Form 8949 and Schedule D. New 1099-DA broker reporting begins for the 2026 tax year.

Key cases & notices

  • · Notice 2014-21
  • · Rev. Rul. 2019-24 (hard forks)
  • · Final 1099-DA regulations (T.D. 10000)
www.irs.gov
Source: SEC.gov · CFTC.gov · FinCEN.gov · OCC.gov · IRS.gov Reviewed quarterly Methodology
§02 · STATE-LEVEL

State regulators

NYDFS BitLicense

New York Department of Financial Services

New York's standalone virtual currency license. The earliest US state framework (2015) and still the most demanding, with prescriptive capital, custody, cybersecurity, and consumer protection rules.

Holders include Coinbase, Gemini, Block (Square), Robinhood Crypto, Bitstamp, Fidelity Digital Assets, PayPal.

www.dfs.ny.gov

Wyoming SPDI

Special Purpose Depository Institution

A state bank charter built for crypto custody and fiat-crypto settlement. SPDIs hold 100% reserves and may not lend customer deposits, putting them outside the FDIC framework.

Holders include Custodia Bank and Kraken Financial (chartered, opening on hold).

wyomingbankingdivision.wyo.gov

California DFPI

Department of Financial Protection and Innovation

Implements the Digital Financial Assets Law (AB 39, in force 2026), establishing a California-specific licensing regime for crypto businesses serving residents.

Adds California-level licensing on top of any federal MSB registration.

dfpi.ca.gov

Texas

Texas Department of Banking & SB 1364

Operates an MSB regime via the Department of Banking and a state regulatory sandbox under SB 1364 to test novel crypto products with limited supervisory exposure.

Important jurisdiction for proof-of-work mining operations and self-custody legislation.

www.dob.texas.gov
§03 · PENDING LEGISLATION

Federal legislation in play

FIT21 Act

Financial Innovation and Technology for the 21st Century Act (H.R. 4763)

Passed by the US House in May 2024. Splits jurisdiction between the SEC (securities) and CFTC (commodities and "digital commodities"), and creates a path for token issuers to certify decentralization.

GENIUS Act

Guiding and Establishing National Innovation for US Stablecoins

Establishes a federal framework for payment stablecoins, with reserve, redemption, and disclosure rules. Reserves must be 1:1 in cash, T-bills, or repo, with monthly attestations.

Lummis-Gillibrand

Responsible Financial Innovation Act

Bipartisan comprehensive bill covering jurisdiction, tax treatment of small transactions (de minimis exception), stablecoin issuance, and bank custody. Re-introduced across successive Congresses.

BPI Framework

Bank Policy Institute crypto recommendations

Industry-side policy framework from BPI representing large US banks. Advocates for clearer custody, capital, and stablecoin reserve rules with parity between banks and crypto-native firms.

Editorial standards

How we cover regulatory news

Our regulatory coverage cites the underlying filing, complaint, notice, or rule by docket number where it exists. We do not paraphrase agency action through second-hand summaries. See our editorial standards for the full disclosure and corrections process.

Editorial standards Crypto tax guide → ETF flow tracker →