Key Takeaways
- • Thomson Reuters Legal Solutions' overview states that U.S. regulators remain divided between encouraging crypto innovation and protecting investors, with no single federal framework governing cryptocurrency as of 2025.
- • The Financial Innovation and Technology for the 21st Century Act (FIT21), introduced in 2024, has passed the U.S. House of Representatives but had not been enacted, and would elevate the CFTC as lead crypto regulator.
- • Regulation is fragmented across the SEC, CFTC, IRS, FinCEN, OFAC, DOJ, FDIC and Federal Reserve, plus state regulators such as NYDFS and California's DFPI, creating overlapping and sometimes conflicting compliance obligations.
- • Courts remain split on whether crypto assets are securities, with a 2023 SDNY split between SEC v. Ripple Labs and SEC v. Terraform Labs.
- • Money transmitter licensing differs across states, complicating nationwide operations for crypto businesses.
Summary
Thomson Reuters Legal Solutions has published an overview of cryptocurrency laws and regulations aimed at legal professionals. The guide notes that the expansion of virtual currencies such as Bitcoin and Ethereum has placed U.S. regulators in a dilemma between fostering innovation and safeguarding investors. It also states that around 60 percent of U.S. citizens lack confidence in crypto trading or investment, a distrust the publication links partly to the absence of a single, consistent set of laws.
As of 2025, no unified federal regulation governs cryptocurrency in the U.S. The Financial Innovation and Technology for the 21st Century Act (FIT21), introduced in 2024, has passed the House of Representatives but has not been enforced. It aims to strengthen the role of the Commodity Futures Trading Commission (CFTC) as lead crypto regulator. In the meantime, authorities rely on existing laws at federal and state levels.
At the federal level, the SEC oversees securities and has brought lawsuits against platforms including Coinbase, Binance and Kraken. The guide describes a judicial split in 2023: in SEC v. Ripple Labs, an SDNY judge ruled that only institutional sales of XRP were securities, while in SEC v. Terraform Labs, another judge held that the UST stablecoin was a security. Courts remain divided. The CFTC regulates cryptocurrencies as commodities and has pursued enforcement against Uniswap, Binance, Celsius and Ooki DAO, and secured an order against FTX for a $12.7 billion penalty. The IRS treats crypto as property, making each sale or trade taxable. FinCEN regulates virtual currency businesses as Money Services Businesses, while OFAC applies sanctions compliance standards to digital assets. The DOJ created the National Cryptocurrency Enforcement Team (NCET) in October 2021. The FDIC and Federal Reserve have issued guidance requiring supervised institutions to notify regulators before engaging in crypto activities.
At the state level, the New York State Department of Financial Services (NYDFS) applies a customer-protection-focused regime, introducing BitLicenses, though market participants often consider it prohibitive. California's DFPI has taken a friendly approach in some respects while implementing a comprehensive framework. State attorneys general, including New York's, have actively pursued charges and settlements against crypto platforms.
Internationally, the Bank for International Settlements, Basel Committee, Financial Stability Board and Financial Action Task Force have developed standards for crypto regulation, with the FATF providing guidance on illicit finance risks.
The guide identifies fragmentation as the central challenge: differing state rules hinder nationwide operations, and money transmitter licensing requirements vary in strictness across states, making compliance complex.
As of 2025, no unified federal regulation governs cryptocurrency in the U.S. The Financial Innovation and Technology for the 21st Century Act (FIT21), introduced in 2024, has passed the House of Representatives but has not been enforced. It aims to strengthen the role of the Commodity Futures Trading Commission (CFTC) as lead crypto regulator. In the meantime, authorities rely on existing laws at federal and state levels.
At the federal level, the SEC oversees securities and has brought lawsuits against platforms including Coinbase, Binance and Kraken. The guide describes a judicial split in 2023: in SEC v. Ripple Labs, an SDNY judge ruled that only institutional sales of XRP were securities, while in SEC v. Terraform Labs, another judge held that the UST stablecoin was a security. Courts remain divided. The CFTC regulates cryptocurrencies as commodities and has pursued enforcement against Uniswap, Binance, Celsius and Ooki DAO, and secured an order against FTX for a $12.7 billion penalty. The IRS treats crypto as property, making each sale or trade taxable. FinCEN regulates virtual currency businesses as Money Services Businesses, while OFAC applies sanctions compliance standards to digital assets. The DOJ created the National Cryptocurrency Enforcement Team (NCET) in October 2021. The FDIC and Federal Reserve have issued guidance requiring supervised institutions to notify regulators before engaging in crypto activities.
At the state level, the New York State Department of Financial Services (NYDFS) applies a customer-protection-focused regime, introducing BitLicenses, though market participants often consider it prohibitive. California's DFPI has taken a friendly approach in some respects while implementing a comprehensive framework. State attorneys general, including New York's, have actively pursued charges and settlements against crypto platforms.
Internationally, the Bank for International Settlements, Basel Committee, Financial Stability Board and Financial Action Task Force have developed standards for crypto regulation, with the FATF providing guidance on illicit finance risks.
The guide identifies fragmentation as the central challenge: differing state rules hinder nationwide operations, and money transmitter licensing requirements vary in strictness across states, making compliance complex.
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