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Curated List
Quick Take
US blockchain regulation spans multiple agencies: FinCEN (MSB registration, AML programs, SAR/CTR filing — penalties up to $1M/violation + imprisonment), SEC (Howey Test, securities offerings, Regulation D/A+/CF exemptions — disgorgement + civil penalties), CFTC (commodity derivatives, leveraged trading — full regulatory authority), OCC (national bank crypto custody and payment services), state MTLs (money transmitter licenses in 47 states, 3-24 month approval, $50K-$1M bonds), and IRS (crypto as property — capital gains tax on every taxable event).
FinCEN (Financial Crimes Enforcement Network) — Treasury
Jurisdiction: Money Services Businesses (MSBs) — businesses that transmit, exchange, or custody cryptocurrency.
Key requirement: MSB registration (free, at fincen.gov). Annual renewal required.
What triggers MSB classification:
Cryptocurrency exchange (any exchange service, including peer-to-peer)
Cryptocurrency ATM operator
Custodial cryptocurrency wallet provider
Initial Coin Offering (ICO) if it constitutes currency exchange
Payment processor accepting cryptocurrency
AML program requirements (Bank Secrecy Act):
Written AML policy
Designated compliance officer
KYC procedures for all customers
Transaction monitoring
SAR filing (within 30 days of detecting suspicious activity)
CTR filing (for transactions ≥$10,000 within one business day)
Independent audit (annual)
Record retention (5 years)
Penalties for non-compliance: Civil: $500–$1M per violation. Criminal: up to $250,000 fine + 5 years imprisonment.
SEC (Securities and Exchange Commission)
Jurisdiction: Any digital asset meeting the Howey Test definition of a security.
What the SEC regulates:
Security token offerings
Crypto exchanges trading securities
Investment advisers managing crypto portfolios
Security token custody (broker-dealer requirements)
Key exemptions for token issuance:
Regulation D Rule 506(b): Unlimited accredited investors, no general solicitation, Form D filing within 15 days
Regulation D Rule 506(c): Unlimited accredited investors, general solicitation allowed, mandatory accredited investor verification, Form D within 15 days
Regulation A+ (Tier 2): Up to $75M, all US investors, SEC qualification required
Regulation CF: Up to $5M, all US investors, must use registered funding portal
Penalties: SEC civil enforcement: disgorgement of profits + civil penalties. DOJ criminal referral: up to 20 years imprisonment for securities fraud.
CFTC (Commodity Futures Trading Commission)
Jurisdiction: Commodity derivatives (Bitcoin and ETH have been ruled commodities by courts).
What the CFTC regulates:
Bitcoin and ETH spot market fraud (limited anti-fraud authority)
Crypto futures and options (full regulatory authority)
Retail commodity transactions (levered/margined crypto trading)
Swap dealers offering crypto derivatives
Key requirement: Any platform offering leveraged crypto trading to US retail users must register with the CFTC or comply with the retail commodity transaction rules.
OCC (Office of the Comptroller of the Currency)
Jurisdiction: National banks and federal savings associations.
Recent guidance:
OCC Interpretive Letter 1170 (2020): National banks may provide cryptocurrency custody services
OCC Interpretive Letter 1174 (2021): National banks may use stablecoins for permissible payment activities
OCC has granted conditional bank charters to crypto companies (Anchorage Digital received OCC national bank charter)
State Level
Money Transmitter Licenses (MTL):
47 states + DC require MTL for cryptocurrency exchange/transmission
Requirements vary: surety bond ($50,000–$1M), application fee ($500–$5,000), 3–24 month approval timeline
New York BitLicense: most demanding state crypto license, separate from standard MTL, 18–36 month approval
No MTL required (as of 2025): Montana, South Carolina, and a few others — check current status as regulations change.
IRS (Internal Revenue Service)
Jurisdiction: Tax treatment of cryptocurrency.
Classification: Cryptocurrency = property (not currency). Every taxable event triggers capital gain/loss.
Taxable events:
Selling cryptocurrency for fiat
Exchanging one cryptocurrency for another
Using cryptocurrency to purchase goods/services
Receiving cryptocurrency as income (mining, staking, airdrop, salary)
Not taxable events:
Purchasing cryptocurrency with fiat
Transferring between your own wallets
Holding cryptocurrency (no tax on unrealized gains)