The legality of cryptocurrency in the United States is a complex issue, with various federal and state agencies providing different levels of regulation. At the federal level, the Financial Crimes Enforcement Network (FinCEN) treats cryptocurrency exchanges as money service businesses, requiring them to comply with Bank Secrecy Act regulations such as registering with FinCEN and implementing anti-money laundering programs.
However, the Securities and Exchange Commission (SEC) has taken the stance that many cryptocurrencies are securities and thus subject to federal securities laws. In a 2018 SEC report, the SEC stated that "tokens offered and sold by 'virtual organizations' as part of a fundraising effort are securities and are subject to the federal securities laws."
"Whether or not a particular transaction involves the offer and sale of a security—regardless of whether it is labeled as a 'currency' or 'utility token'—depends on the facts and circumstances, including the economic realities of the transaction." — SEC Report, 2018
In summary, while cryptocurrency exchanges are regulated at the federal level, the legality of individual cryptocurrencies depends on their classification as securities. It is important for individuals and businesses dealing with cryptocurrencies to stay informed of the evolving regulatory landscape in the United States.
Source:
FinCEN Cryptocurrency Guidance
SEC Report on Cryptocurrency
Last updated: 08-05-2025 Disclaimer: This article does not provide legal advice. If you need legal advice, please contact an attorney directly.
