The U.S. government is set to enforce stricter disclosure requirements for all crypto transactions as part of a collaborative effort between the top federal agencies in the country. The U.S. Department of the Treasury, along with the Board of Governors of the Federal Reserve System and the Financial Crimes Enforcement Network, is working on a revision of the definition of money to include cryptocurrencies. The aim is to tighten reporting rules for financial institutions dealing with both local and cross-border crypto transactions.
This regulatory initiative, revealed in the Treasury Department’s semiannual agenda, is expected to issue a final notice of proposed rulemaking in September 2025. The proposed changes will amend the Bank Secrecy Act to encompass cryptocurrencies under the definition of money, ensuring that they are subject to the same reporting requirements as traditional fiat currencies. The rules will apply to transactions involving convertible virtual currencies with equivalent value to currency or serving as a substitute, as well as digital assets with legal tender status, including central bank digital currencies.
In a related development, the U.S. Department of Justice is focusing on updating regulations to address crimes involving artificial intelligence. The DOJ is urging the U.S. Sentencing Commission to impose additional penalties for crimes facilitated by AI, expanding the guidelines beyond the current scope.
This regulatory tightening follows recent government actions, such as the transfer of 10,000 Bitcoin linked to a Silk Road raid. Consensys has also requested the Internal Revenue Service to delay implementing proposed tax regulations that require reporting of certain cryptocurrency sales by brokers and exchanges. The IRS published an early version of Form 1099-DA in April, which would treat crypto brokers similarly to traditional brokers handling stocks and bonds, necessitating the filing of specific forms for crypto transactions.
