Cryptocurrency in the United States: regulation, taxes and licensing
In short. Crypto is legal in the United States, and there is still no single law covering it. The tax authority treats a crypto asset as property, so profit is a capital gain: hold for more than a year and the rate drops, sell sooner and it is taxed as ordinary income. Market rules are split between the SEC and the CFTC, and the bill meant to separate their remits had not passed as of August 2026.
- HELD OVER A YEAR
- 0–20%long-term capital gains
- SOLD SOONER
- up to 37%taxed as ordinary income
- STAKING AND MINING
- Taxableincome when received
- EXCHANGE REPORTING
- 1099-DAvenues report to the IRS
- STABLECOINS
- Law passedthe GENIUS Act, July 2025
- MARKET STRUCTURE
- Not passedthe CLARITY Act is stuck
Who regulates crypto in the United States
The awkward answer is several agencies at once, and they have not always agreed. The Securities and Exchange Commission treats a large share of tokens as securities requiring registration. The Commodity Futures Trading Commission treats bitcoin and ether as commodities and regulates derivatives on them. The gap between those positions was litigated for years while companies guessed which definition applied to them.
States sit on top of the federal layer. New York runs its own BitLicense, which costs more and takes longer than full authorisation in many countries.
The first real movement came in July 2025 with the GENIUS Act — the first federal statute written specifically for a crypto asset. It governs stablecoins: who may issue them, how state and federal oversight divide, what has to sit in reserves, and whether a holder may be paid interest.
A second bill, the CLARITY Act, was meant to handle the rest: separate SEC and CFTC authority and finally say who answers for what. The House passed it in July 2025, the Senate Banking Committee cleared it 15–9 in May 2026, and a merged Senate text of six hundred-odd pages appeared on 22 July. The votes were not there before the August recess, and September is now the realistic window.
Three fights remain: who enforces the ethics provisions, whether stablecoin rewards survive, and how far protections for developers reach.
Tax: how the IRS counts it
The Internal Revenue Service classified crypto as property back in 2014, and the logic has not changed since. Every sale, every swap of one coin for another, and every purchase paid for in crypto is a disposal of property on which a gain or loss must be worked out.
The rate follows the holding period. More than a year and it is a long-term gain at 0%, 15% or 20% depending on your income. Less than a year and it is short-term, taxed on the ordinary income scale that reaches 37%.
There is no de minimis threshold of the kind Europe has: buying coffee with bitcoin is formally a disposal and a taxable event. Bills to create one have been introduced repeatedly and none has passed.
Staking, mining and being paid in crypto are income at the moment of receipt, at that day's market price. Later appreciation is then a capital gain.
Since 2025 the IRS has had its own data: exchanges and brokers report on Form 1099-DA. Before that the only source was the taxpayer.
Allowed
- Buy, hold, sell and transfer crypto assets
- Hold a bitcoin ETF in an ordinary brokerage account
- Mine and earn staking rewards, declaring the income
- Pay in crypto wherever it is accepted
Restricted
- No de minimis rule: paying for coffee is a taxable disposal
- New York requires a separate BitLicense to operate
- The SEC treats many tokens as securities, with everything that follows
- Market rules are unfinished — the CLARITY Act has not passed
How the rules took shape
The IRS declares crypto to be property. That definition still stands and drives all the tax logic.
New York introduces the BitLicense, the country's first dedicated licence for crypto firms.
Spot bitcoin ETFs are approved, bringing crypto onto ordinary brokerage accounts.
Exchanges begin reporting to the IRS on Form 1099-DA.
The GENIUS Act passes — the first federal law written for a crypto asset. It covers stablecoins.
The CLARITY Act has cleared the House and Senate Banking Committee but lacks floor votes. September is the new target.
Worth knowing
On 22 May 2010 a Florida programmer bought two pizzas for 10,000 BTC — the first known purchase of a physical good with bitcoin. The date is still marked as Bitcoin Pizza Day.
Common questions
Do I pay tax on crypto profits in the US?
Yes. Crypto is property, so every sale, swap or purchase paid in it is a disposal with a gain to compute. The rate depends on holding period: under a year up to 37%, over a year 0%, 15% or 20%.
Is swapping one coin for another taxable?
Yes, that is a disposal too. Never touching dollars makes no difference.
Is there an allowance for small purchases?
No. Buying a coffee formally requires a gain calculation. De minimis bills have been introduced repeatedly and none has passed.
What would the CLARITY Act do?
Separate SEC and CFTC authority and define which tokens are securities and which are commodities. Today that is settled case by case in court.
Do exchanges report my trades now?
Yes. Form 1099-DA has applied since 2025, and venues and brokers send the data to the IRS directly.
Sources
Related reading
Other countries
Updated 19.08.2026 · this is reference material, not investment or tax advice