Is crypto legal in United States? Rules & regulation (2026)

Signed July 18, 2025, the GENIUS Act requires payment stablecoins to be 1:1 backed by USD or short-term, low-risk assets, mandates BSA/AML programs, and carves compliant stablecoins out of the 'security' and 'commodity' definitions. The OCC issued a Notice of Proposed Rulemaking on March 2, 2026 and Treasury proposed illicit-finance rules in April 2026.

The Digital Asset Market Clarity Act (H.R. 3633) passed the House 294-134 on July 17, 2025 and cleared Senate Banking Committee 15-9 on May 14, 2026, but a Senate floor vote had not occurred as of June 2026. It would give the CFTC exclusive jurisdiction over digital commodity spot markets while preserving SEC jurisdiction over investment contract assets.

Under Chair Paul Atkins, the SEC dropped cases against Binance, Coinbase, Kraken, Ripple and Robinhood, and announced 'Project Crypto' to develop fit-for-purpose rules. On March 17, 2026 the SEC and CFTC issued a joint interpretation clarifying how federal securities laws apply to crypto assets.

FinCEN treats crypto exchanges, administrators and certain wallet providers as money transmitters that must register as MSBs (Form 107) within 180 days of starting operations, maintain AML programs and file SARs/CTRs. Most states additionally require a state money transmitter license; New York requires a BitLicense.

On April 10, 2025 President Trump signed H.J.Res. 25, repealing the IRS 'DeFi broker' regulation under the Congressional Review Act, so DeFi front-ends are not required to report customer transactions to the IRS, and the rule cannot be reissued in substantially similar form without new legislation.

The IRS treats digital assets as property (Notice 2014-21); dispositions trigger capital gains/losses reported on Form 8949/Schedule D, and staking, mining and airdrops are ordinary income. Centralized brokers must issue the new Form 1099-DA for 2025 transactions (gross proceeds), with cost-basis reporting beginning for assets acquired on or after January 1, 2026.