US digital-asset policy is changing rapidly in 2026. New legislation now covers stablecoins, while established financial legislation continues to apply to money services, securities, derivatives, sanctions and taxation.
There is no single permit for every digital-asset activity. The applicable framework depends on the service, the asset involved and the jurisdictions served.
Prior to reading, you can take a look at the AML/CFT compliance reforms of the FinCEN.
Federal Crypto Regulatory Framework
Several authorities oversee various areas.
| FinCEN | AML measures and money services |
| SEC | Securities-related activities |
| CFTC | Commodity derivatives |
| OFAC | Sanctions |
| IRS | Taxation and reporting |
| OCC | Certain digital-asset activities involving national banking institutions |
The GENIUS Act created a dedicated system for payment stablecoins. The proposed CLARITY Act would create a broader structure for digital-asset markets.
FinCEN and MSB Registration
Certain exchanges, custodial service providers, payment processors, and businesses that transmit virtual currency on behalf of others may qualify as MSBs, depending on their activities.
FinCEN requires qualifying organizations to file the relevant details and maintain an AML program.
MSBs generally need to file Form 107 within 180 days of starting their activities and renew the filing every two years. However, this federal filing does not eliminate the need for any required state permits.
AML & KYC Compliance Requirements
Covered firms may need:
- Customer identification and verification;
- Risk-based due diligence;
- Beneficial-owner checks;
- Transaction analysis;
- Suspicious activity reports;
- Sanctions screening;
- Written AML procedures;
- Staff training;
- Independent testing;
- Recordkeeping.
The Travel Rule generally applies to covered transmittals of funds of $3,000 or more and may require the transmission of specified originator and beneficiary information.
GENIUS Act and Stablecoin Regulation
This law establishes a federal framework for payment stablecoins.
It regulates the following aspects:
- eligibility criteria for allowed issuers;
- 1:1 backing with reserve assets;
- regular public reporting on the composition of reserves;
- a transparent redemption process for tokens;
- priority protection of holders’ funds in case of an issuer’s insolvency;
- mandatory abidance by AML and sanctions criteria.
Allowed reserves include cash and short-term U.S. Treasury securities. The rules are expected to be fully implemented in early 2027, unless executing rules provide for earlier application.
CLARITY Act and Market Structure Reform
This law would create clearer categories for virtual commodities and securities and define the respective roles of the SEC and CFTC.
The proposal covers:
- Digital-asset classification;
- Exchanges;
- Brokers and dealers;
- Disclosures;
- Consumer protection;
- Online commodity markets.
SEC and CFTC Oversight of Crypto Assets
When an e-asset or related activity falls within securities legislation, the SEC becomes relevant. The Howey Test is used to assess whether a particular arrangement may qualify as an investment contract.
Possible SEC-related activities:
- Security-token issuance;
- Digital securities platforms;
- Investment advice;
- Broker-dealer services;
- Certain custody services.
The CFTC mainly covers derivatives such as futures, options and swaps.
State-Level Licensing Requirements
- New York requires qualifying virtual-currency firms to obtain a BitLicense.
- California began its Digital Financial Assets Law framework on July 1, 2026.
- Connecticut and Colorado can treat certain virtual-currency activity under money-transmitter legislation.
- Louisiana has a dedicated Virtual Currency Business Act.
- Michigan covers relevant activity through its money-transmission legislation.
Money Transmitter Licenses (MTLs)
An MTL is issued by an individual state and is separate from FinCEN MSB status.
An application may involve (depends on the region):
- Financial statements;
- Net-worth standards;
- Surety bonds;
- Ownership information;
- AML procedures;
- Cybersecurity controls;
- Consumer safeguards;
- Periodic reporting.
A separate assessment is necessary.
DeFi Regulation
DeFi is still challenging for the conventional monetary systems because certain protocols are run without a formal intermediary.
The element of control is crucial. When one operates funds belonging to another party, this person becomes a subject of monetary-transmission laws. However, genuinely non-custodial software systems may not be treated the same way.
In 2025, Congress decided to remove the IRS measure that required certain DeFi front-end operators to report to the authorities. This act led to the abolition of that particular reporting scheme but left other tax and financial obligations untouched.
The CLARITY Act may bring about significant changes to regulations, but the parts of the bill that suggest regulation of DeFi are not yet law.
Future Regulatory Developments
Some key developments that have to be kept an eye on:
- GENIUS Act implementation and stablecoin supervision;
- CLARITY Act Senate consideration;
- Greater scrutiny of privacy-focused digital currencies;
- New state digital-asset frameworks;
- Further DeFi policy;
- Regulatory sandboxes;
- International coordination.
FAQ
Is crypto legal in the US?
Yes. Online currencies are permitted. However, particular activities can fall under financial, securities, tax, sanctions or money-transmission legislation.
Who regulates crypto businesses?
FinCEN, the SEC, CFTC, OFAC and IRS oversee different areas. State authorities can impose further requirements.
When is MSB registration required?
Generally, when activities fall within the Bank Secrecy Act definition of an MSB, such as transferring virtual currency for others.
Do crypto exchanges need state licenses?
Often, yes. FinCEN MSB status does not automatically authorize activity across every state.
What are the AML requirements for crypto firms?
The main ones would consist of conducting KYC, evaluation, customer activity reviews, filing money reports if needed, screening for adherence to international sanctions, documenting procedures and keeping records.
How are stablecoins regulated?
GENIUS Act targets payment stabletokens by prescribing a supervisory regime that applies to issuers, reserves, disclosures and redemptions.
What is the CLARITY Act?
It is a proposed law to offer certainty, dividing supervisory roles between the SEC and CFTC.
How is DeFi regulated in the US?
There is no single DeFi framework. Treatment depends on custody, control and the role of intermediaries.
- Federal Crypto Regulatory Framework
- FinCEN and MSB Registration
- AML & KYC Compliance Requirements
- GENIUS Act and Stablecoin Regulation
- CLARITY Act and Market Structure Reform
- SEC and CFTC Oversight of Crypto Assets
- State-Level Licensing Requirements
- Money Transmitter Licenses (MTLs)
- DeFi Regulation
- Future Regulatory Developments
- FAQ