Name
Global FinTech Guide
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United States
SectionTitle
DLT and cryptocurrencies
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FinTechs belonging to this category offer financial services using crypto currencies. This category also includes FinTechs utilising blockchain and distributed ledger technologies (DLT) upon which Bitcoin and Ethereum are based, among others. FinTechs develop and do research in this field in order to create new services – e.g. crypto currency exchange markets, wallet providers, NFTs-related services, new payment services, "smart contracts" or new clearing and settling services.

Introduction

Attitude of the country towards financial services using crypto currencies

Adoption of digital assets and the elimination of regulatory uncertainty relating thereto has been a pillar of the current administration’s economic policies. While cryptocurrencies are viewed with skepticism by certain state regulators, support for digital assets has become increasingly bipartisan, with Congress passing the GENIUS Act (relating to stablecoins) and pushing forward several market structure bills that have received support from both sides of the aisle. Cryptocurrencies like Bitcoin and Ethereum are legal and increasingly accepted, though they are used primarily as investment assets rather than for everyday transactions due to tax and other implications.

There has been a seismic shift in policy relating to cryptocurrencies. Regulatory agencies dropped most non-fraud causes brought by the previous administration. The SEC has provided guidance on when mining services, staking-as-a-service, memecoins, stablecoins, and liquid staking tokens are not securities. The Department of Labor withdrew guidance recommending that 401(k)s and other benefit plans not invest in cryptocurrencies. The OCC has taken active steps to allow cryptocurrency companies to be banked. The CFTC has approved monitoring that relies on publicly viewable blockchain technology. The President named a crypto czar, and the SEC established a crypto task force. Expect crypto friendly policies and regulations to continue to be adopted.



Legal affairs

Obligations and requirements to provide financial services using crypto currencies described above
The regulatory regimes applicable to cryptocurrencies remain in flux. Until recently, the SEC took the position that most cryptocurrencies other than bitcoin are subject to securities laws. It has recently clarified that a number of types of cryptocurrencies and crypto transactions (mining services, staking-as-a-service, meme coins, stablecoins, decentralized physical infrastructure network (DePIN) distributions, and liquid staking tokens) are not securities or securities transactions within certain parameters. Most cryptocurrencies that are not securities likely are commodities. The CFTC, which is the federal regulator with oversight over commodities, does not have the power to regulate spot trading, though it does regulate commodities derivatives and has antifraud enforcement authority over spot markets. Spot markets are primarily regulated as MSBs by the individual states as described above in “Payment services,” or through preemption of money transmission laws by operation as a bank or trust company. Multiple states now require special licenses to conduct certain digital assets businesses. Stablecoins within the meaning of the GENIUS Act are regulated by banking regulators, such as the OCC at the federal level.

The obligations and regulatory requirements for digital asset service providers in the United States vary significantly based on the nature of the digital asset and the type of services offered. Below is an overview of how different categories of service providers are regulated:

Cryptocurrency Exchanges: Typically, centralized cryptocurrency exchanges fall under the regulatory scope of the BSA. This requires them to register with the FinCEN, implement AML and KYC programs, maintain detailed records, and submit regular reports. At the state level, exchanges generally must register as MSBs or be registered as a bank or trust company.

Cryptocurrency Wallets: Custodial wallets, which hold and manage cryptocurrency on behalf of users, are regulated as MSBs or banks. Non-custodial wallets (e.g., hardware wallets or software wallets like MetaMask) are largely unregulated, though they may be subject to evolving guidance.

Swap Execution Facilities: Facilities that offer trading of cryptocurrency futures, options, perps , or other derivatives are regulated by the CFTC. These facilities must register with the CFTC and adhere to extensive regulatory requirements.

 

Stablecoins:USD denominated stablecoins will be governed by the newly passed GENIUS Act.  This requires stablecoins to be backed by USD or U.S. treasuries, gives consumer protections to stablecoin holders, mandates public disclosure of reserves, and provides for prudential regulation by federal banking authorities (or in some cases for smaller stablecoin issuers, state authorities). While other stablecoins such as non-USD denominated stablecoins and yield-bearing stablecoins are not covered by the law, they are not banned and still could be issued pursuant to other regulatory regimes or in the regulatory gray area.

Decentralized Exchanges and Automated Market Makers
: These platforms also face regulatory uncertainty and could be subject to various regulations. Currently, they are not regulated by any specific federal agency but are anticipated to face significant scrutiny as regulatory frameworks develop.

 

Other Digital Assets: Different types of digital assets may have different regulatory treatment depending largely on their underlying characteristics and the manner of offering.  The SEC has released guidance that stablecoins, memecoins, liquid staking tokens, and staking-as-a-service are not securities if they meet certain criteria.

Additional State and Federal Regulations:
In the United States, while cryptocurrencies are not commonly used as a form of 'money' for most transactions, many states regulate Bitcoin and other cryptocurrencies as if they were money. Generally, unless a transaction is conducted by a bank or trust company, a money transmission license is required crypto for fiat and vice versa.

Federal regulations provide a broad framework, but state regulations introduce additional complexity. Most states mandate a money transmission license for cryptocurrency transactions, with exceptions for banking or trust companies. New York has implemented a specific regulation known as the BitLicense, managed by the DFS, which imposes stringent requirements. Illinois is in the process of implementing a similar licensure procedure .  Certain states also explicitly recognize that cryptocurrencies are not subject to state money transmission laws.

From a tax perspective, the Internal Revenue Service (IRS) considers cryptocurrencies to be property, not currency, as established under IRS Notice 2014-21. This classification has been further clarified by Revenue Ruling 2019-24, which addresses the tax treatment of hard forks and airdrops, and by Notice 2021-43, which provides additional guidance on staking and other cryptocurrency transactions. It is anticipated that Congress will turn to a bill overhauling crypto taxation after a market structure bill has passed.

In general, cryptocurrency mining is taxable at the fair market value of the cryptocurrency at the time it is mined, and the IRS takes a similar position with respect to staking and airdrops . The cost basis for cryptocurrencies purchased with fiat currency is the amount spent to acquire the cryptocurrency, including any associated fees. There are complexities related to the taxation of cryptocurrencies, including the lack of a de minimis safe harbor for small transactions and the intricate nature of tax reporting requirements. Taxpayers must report all cryptocurrency transactions, including those involving staking, airdrops, and hard forks, on their tax returns.



Additional comments regarding the legal situation for financial services using crypto currencies or what FinTech’s must be aware of in this business area
While the Biden administration was openly hostile to digital assets, the Trump administration has made crypto a national focus and has welcomed the industry with open arms. That said, this does not mean there is a return to the “wild west” of crypto. In the absence of further regulation, most digital assets would still be treated as commodities or securities and could be subject to regulation, depending on the activities being performed. Furthermore, every state still has its own securities laws, with over a dozen states using a different, more expansive test to determine when an instrument is an investment contract that constitutes a security. Further, a number of states remain hostile to cryptocurrencies. To the extent a regulatory vacuum remains, state attorneys general might fill that void with state law actions.



Economic conditions

Market size for financial services using crypto currencies and biggest companies in this business area

Because of the fragmented and international nature of cryptocurrency is nearly impossible to determine what portion of international trading volume is attributable to the U.S. As of 2025, approximately 28% of American adults own some crypto, which has been relatively steady for the past several years. Among the leading cryptocurrency exchanges by trading volume in the U.S. are Coinbase, Binance.US, Kraken, Crypto.com and Gemini. In the realm of cryptocurrency custody, prominent firms include Coinbase Custody, Gemini Custody, Fidelity Digital Assets, BitGo, and Anchorage. Major cryptocurrency payment processors such as BitPay, Circle, CoinGate, and Coinbase Commerce continue to facilitate transactions in the sector. The landscape of financial services involving cryptocurrencies is dynamic and subject to frequent changes, reflecting ongoing developments and regulatory shifts in the market.



Additional comments regarding the economic situation for financial services using crypto currencies or what FinTech’s must be aware of in this business area

Historically, companies involved with cryptocurrency have had difficulty in establishing and maintaining bank accounts for fiat currency, and federal regulators even had informal directives designed to discourage banks from engaging with those businesses. While President Trump recently signed an executive order intended to end the debanking of high-risk industries such as cryptocurrency, banks have been slow to move in this regard.

Furthermore, there has been a heightened focus on KYC and AML regulations within the cryptocurrency and digital assets market. This increased regulatory attention has led to longer account opening processes and higher compliance costs for firms operating in this space. FinTech companies must be prepared to invest in robust compliance measures to meet evolving regulatory requirements, which can impact their operational efficiency and financial performance.

Overall, while the cryptocurrency industry continues to grow and attract significant investment, businesses must navigate these economic and regulatory complexities to successfully integrate and operate within the traditional financial system.

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