US federal agencies are in the process of redefining the term “money” to encompass crypto, subjecting them to the same reporting obligations as conventional currency.
The objective of this measure is to guarantee that financial institutions regard crypto with the same level of importance as traditional currency when disclosing both domestic and international transactions.
The Department of the Treasury and the Financial Crimes Enforcement Network are spearheading initiatives to redefine the term “money” under the Bank Secrecy Act (BSA) in order to subject convertible virtual currencies to the same reporting regulations as conventional money.
The anticipated deadline for the final proposed rules is September 2025, highlighting the importance of promptly revising financial regulations to align with the rapidly evolving digital economy.
The inclusion of cryptocurrencies inside the definition of money coincides with other notable government measures, including the transfer of around 10,000 Bitcoin associated with a previous Silk Road operation. The Department of Justice is revising its guidelines to address offenses facilitated by artificial intelligence (AI).
In June 2024, the US Supreme Court overturned the Chevron doctrine, which has made the regulatory environment for crypto more complex. This decision has the potential to undermine the authority of the Securities and Exchange Commission in regulating crypto.
The US Treasury and IRS have implemented new tax regulations in May 2024, which mandate that bitcoin brokers must register transactions and keep comprehensive records beginning in 2026.
Senators Ron Wyden and Cynthia Lummis have expressed disapproval of the Department of Justice’s classification of crypto software services as unregistered money transmitters. This highlights the continuous challenges and intricacies involved in regulating the cryptocurrency industry.
