Cryptocurrency regulation is a rapidly developing area of law that is being shaped by a variety of international organizations, national and state governments and other regulatory bodies. Within the United States, there is no one framework for regulating cryptocurrency and several different agencies—including the SEC and CFTC—have weighed in on how they believe that crypto should be classified and regulated.
Some countries have taken a more progressive approach to crypto regulation. El Salvador, for example, has declared Bitcoin legal tender, allowing people to use it to pay taxes and offering businesses tax exemptions if they accept it. In addition, the central bank is creating a strategic reserve of Bitcoin to pay down the nation’s debt.
At the same time, however, many people lack confidence in cryptocurrency trading and investment, with some blaming a lack of regulations for the volatility and fraud associated with this emerging market. A new report from the Brookings Institution finds that a significant reason for this distrust is the inconsistent approach to regulatory oversight of the crypto industry by federal and state regulators.
The lack of a common regulatory framework has led to a confusing patchwork of rules in the U.S. The SEC largely sees crypto assets as securities, while the CFTC treats them more like commodities. In an attempt to provide some clarity, the GENIUS Act and CLARITY Act passed the House in 2025 but are still under consideration by the Senate. Both of these bills seek to define how digital assets should be treated under federal securities and commodity laws, reducing the likelihood that different regulatory bodies will impose conflicting requirements on companies.