Does The U.S. Government Regulate Crypto?

Cryptocurrencies are a popular investment, and they’re also a way to send money. But if you’ve ever wondered whether the U.S. government regulates cryptocurrency, the answer is…not really.

The federal government doesn’t regulate trading in crypto or exchange rates (in fact, it can be difficult for people outside of the U.S. to even invest in cryptocurrencies), but it does have some rules that govern how crypto is used as an investment vehicle and payment method within America’s borders.

Crypto Is Not A Security

Cryptocurrencies are not securities. They cannot be classified as such because they do not fit the definition of security.

The term “security” means any note, stock, treasury stock, bond, debenture, evidence of indebtedness, certificate of interest, or participation in any profit-sharing agreement…and any other instrument commonly known by its characteristics as being a medium for investment and which may be sold by one person to another.

Crypto Is Not Regulated By The SEC

The SEC does not have crypto regulation users. It only regulates exchanges and token issuers, which are companies that issue their tokens to raise money for their projects. The SEC has been investigating several exchanges over the past few months, but this doesn’t mean that they’ve been regulating crypto users directly; it just means they’re looking into whether or not those exchanges were following regulations correctly.

Cryptocurrency Isn’t Illegal

Cryptocurrency is not illegal. The U.S. government has no laws against it, and no plans to enforce any.
Cryptocurrency isn’t regulated by the SEC or the CFTC. Cryptocurrencies aren’t securities, so they don’t fall under these agencies’ jurisdiction (although some argue that Ethereum should). You can sell Bitcoin on websites without registering with anyone at all!

The U.S. Government Helps Crypto, But It Also Limits It

The U.S. government is a big player in the crypto space, but they also want to make sure that cryptocurrencies are used safely and responsibly. To that end, they’ve created a regulatory framework for crypto that includes rules about how you can buy and sell it as well as what kinds of activities you can use it for.


The U.S. government has a complicated relationship with cryptocurrency. On the one hand, it helps crypto by creating crypto regulation that protects investors and consumers from fraud. On the other hand, these same regulations can be restrictive when they prevent new technologies from being developed or used in creative ways by entrepreneurs who want to explore new ideas without being bogged down by red tape.