Businesses exploring cryptocurrency in 2025 must navigate a shifting regulatory environment, especially under the second Trump administration. This guide consolidates current rules, new developments, and actionable compliance tips tailored for U.S. businesses adopting crypto.

🏛️ Key U.S. Crypto Regulatory Bodies and Requirements

1. Financial Crimes Enforcement Network (FinCEN)

• AML/KYC Compliance: Implement Know Your Customer (KYC) procedures and Anti-Money Laundering (AML) programs as mandated by the Bank Secrecy Act.
• MSB Registration & AML Rules: If your business facilitates crypto transactions, you may be categorized as a Money Services Business (MSB). Registration with FinCEN is required.

📎 FinCEN Guidance on Convertible Virtual Currencies

2. Internal Revenue Service (IRS)

• The IRS treats crypto as property, not currency. This impacts capital gains reporting and accounting.
• File crypto-related gains or losses using Form 8949 and Schedule D.
• Payments to contractors or vendors over $600 in crypto must be reported on Form 1099-NEC.

📎 IRS Virtual Currency Tax Center

3. Securities and Exchange Commission (SEC)

• Digital assets deemed securities fall under SEC regulation.
• Evaluate tokens using the Howey Test to determine if SEC registration is necessary.

📎 SEC Framework for Digital Assets

4. Commodity Futures Trading Commission (CFTC)

• Regulates crypto commodities (e.g., Bitcoin, Ethereum) and crypto derivatives.

📎 CFTC Statement on Virtual Currencies

5. Office of Foreign Assets Control (OFAC)

• Crypto payments must comply with U.S. sanctions laws.
• Conduct address screenings to avoid dealing with restricted countries or entities.

📎 OFAC Compliance Guidelines for Crypto

6. State-by-State Compliance

• 49 U.S. states treat crypto businesses as money transmitters.
• States like New York require specific licensing (e.g., BitLicense).

📎 State Crypto Laws and Licensing Tracker

🏦 2025 Trump Administration Crypto Policy Updates

1. Executive Order 14178 (March 2025)

• Prohibits a U.S. CBDC (Central Bank Digital Currency).
• Mandates development of a federal crypto regulatory framework within 180 days.

📎 Executive Order 14178 – Wikipedia

2. Strategic Bitcoin Reserve

• Created by executive action to establish a federal Bitcoin and crypto reserve, using confiscated or seized digital assets.

📎 Strategic Bitcoin Reserve Coverage

3. SEC and DOJ Enforcement Rollbacks

• The SEC dropped lawsuits against Ripple and Coinbase.
• DOJ disbanded the National Cryptocurrency Enforcement Team.

📎 Reuters Coverage on SEC Dismissals

4. Banking Integration — May 2025 Update

• New rule announced last week: Banks are no longer required to obtain prior approval from federal agencies to offer crypto services.
• This includes holding crypto assets in custody, facilitating crypto payments, or enabling crypto-fiat conversion.

📎 Federal Reserve and OCC Guidance on Crypto Banking

⚠️ Ethical and Legal Risks

• Conflict of Interest: Trump’s involvement in crypto projects (e.g., $TRUMP memecoin) and industry fundraising events has drawn scrutiny.
• Legislative Roadblocks: Bills like the GENIUS Act are stalled due to perceived conflicts with Trump’s own crypto activities.

📎 The Daily Beast – Ethics Concerns

✅ Crypto Compliance Checklist for Businesses

1. Register as an MSB (if required) with FinCEN
2. Establish AML/KYC protocols and train staff regularly
3. Use crypto accounting tools (e.g., CoinLedger, TaxBit)
4. File IRS forms for crypto income and payments
5. Screen wallets and addresses for OFAC compliance
6. Obtain state-specific licenses, including BitLicense if operating in NY
7. Choose crypto-friendly banks and remain current on federal banking laws
8. Evaluate whether tokens you issue or use are securities