Module 14: Taxation and Regulation (US and EU Edition)
United States: Regulation in 2026
Chapter 7 of 12 · about 5 minutes
7.1 Who's in charge?
"In the US, who actually regulates crypto?" Mint asked.
"For years, the honest answer was 'it depends, and people disagree,'" said Hash. "Several agencies claimed parts of it, and much of the rulebook was written through enforcement cases rather than clear rules. Since 2025, that's been changing, through a stablecoin law, new guidance from regulators, and a market structure bill that, as of October 2026, has stalled."
This chapter summarises the US regulatory landscape as of October 2026. It changes frequently, so check current developments.
7.2 The main players
| Agency | Main role in crypto |
|---|---|
| Securities and Exchange Commission (SEC) | Assets and activities that are securities, including many token offerings and securities-related platforms |
| Commodity Futures Trading Commission (CFTC) | Commodities and derivatives, including Bitcoin futures and other crypto derivatives |
| Treasury, including FinCEN | Anti-money laundering rules, sanctions, and money transmission at the federal level |
| Banking regulators | Banks' crypto activities and stablecoin issuers under the stablecoin law |
| IRS | Taxation (Chapters 4 to 6) |
| State regulators | Licensing of crypto businesses, such as money transmitter licences; some states have dedicated crypto licences |
The central question has long been: is a particular token a security or a commodity? The answer decides which regulator oversees it and what rules apply.
7.3 Stablecoins: the GENIUS Act
In July 2025, the US enacted a federal stablecoin law, often called the GENIUS Act (Module 10, Chapter 6). It created a framework for payment stablecoins, including:
- Licensing requirements for issuers.
- Reserves backed one-for-one by high-quality liquid assets, such as cash and short-term government bonds.
- Regular disclosure of reserves.
- General restrictions on issuers paying interest directly to holders.
Regulators have been writing detailed implementing rules since the law passed.
7.4 The SEC and CFTC token taxonomy
In March 2026, the SEC, together with the CFTC, issued an interpretive release setting out how they view different types of crypto assets under existing law. It described five broad categories:
| Category | General idea |
|---|---|
| Digital commodities | Assets tied to the operation of a functioning, decentralised network |
| Digital collectibles | Assets like NFTs representing art, collectibles, or similar items |
| Digital tools | Tokens that perform a practical function, such as access or membership |
| Payment stablecoins | Stablecoins covered by the stablecoin law |
| Digital securities | Tokens that represent traditional securities or are sold as investment contracts |
An interpretation explains how regulators read existing law; it isn't a statute, and courts or future regulators could view things differently.
7.5 Regulation Crypto Assets (proposed)
In August 2026, the SEC proposed Regulation Crypto Assets, building on the taxonomy. The proposal included tailored exemptions that would let crypto projects raise capital without full traditional securities registration, within limits, and a conditional safe harbor under which a token sold as part of an investment contract could stop being treated as part of that investment contract once the issuer's essential managerial efforts were complete.
The public comment period closes on 20 October 2026. As a proposal, it has no binding effect, and final rules may differ significantly.
7.6 The market structure bill: the CLARITY Act
The Digital Asset Market Clarity Act (CLARITY Act) aimed to write a statutory framework dividing oversight between the SEC and CFTC, define when tokens qualify as digital commodities, and set registration and customer protection rules for exchanges, brokers, and dealers.
| Date | Event |
|---|---|
| July 2025 | Passed the House of Representatives, 294 to 134 |
| May 2026 | A Senate version advanced through the Senate Banking Committee |
| 15 September 2026 | A Senate procedural vote to begin debate failed, 49 to 50, short of the 60 votes needed |
As of October 2026, the bill was stalled but not formally dead; a motion to reconsider kept a procedural path open. Many observers expected no comprehensive market structure law before 2027. Disagreements reportedly centred on ethics provisions, DeFi treatment, and regulatory authority, rather than the basic SEC and CFTC split.
"So the rules are coming from regulators instead of Congress, for now," said Node.
"For now," said Hash. "And rules made by agencies can be changed by future agencies more easily than laws can. That uncertainty is part of the US picture."
7.7 Other parts of the landscape
| Area | Status (general) |
|---|---|
| Spot crypto ETFs | Bitcoin and Ether trading since 2024; the SEC's September 2025 generic listing standards opened the door to spot ETPs for other assets, such as Solana and XRP (Module 10, Chapter 8) |
| Anti-money laundering | Exchanges and many crypto businesses must register, verify customers, and report suspicious activity |
| Sanctions | Transactions with sanctioned persons and addresses are prohibited |
| State licensing | Varies; some states require specific licences to serve their residents |
| Tax legislation | Pending, as described in Chapter 5 |
7.8 What this means for users
- Use regulated platforms where possible. They're subject to customer protection, custody, and reporting rules.
- Expect identity checks and reporting. Know Your Customer requirements and Form 1099-DA reporting are standard (Chapter 6).
- Expect changes. Rules on which tokens are securities, which platforms need registration, and how stablecoins work were still evolving in 2026.
- Watch for state restrictions. Some products may be unavailable in certain states.
7.9 Try it yourself
Check the current status of the CLARITY Act, Regulation Crypto Assets, and any implementing rules for the stablecoin law. Then check whether the exchange you use is registered or licensed in your state, and what customer protections it describes for custody of your assets.
Key takeaways from this chapter
- US crypto regulation involves the SEC, CFTC, Treasury and FinCEN, banking regulators, the IRS, and state regulators.
- The security-versus-commodity question determines which regulator oversees a token.
- The 2025 GENIUS Act created a federal framework for payment stablecoins, with reserve and disclosure requirements.
- In March 2026, the SEC and CFTC issued a five-category token taxonomy as an interpretation of existing law.
- In August 2026, the SEC proposed Regulation Crypto Assets, with fundraising exemptions and a safe harbor; it isn't final.
- The CLARITY Act passed the House in 2025 but stalled in the Senate in September 2026.
- Use regulated platforms, expect identity checks and reporting, and watch for ongoing changes.