As of 2023, the regulatory landscape for cryptocurrencies and Web3 in the United States is multifaceted and evolving, with various federal and state-level laws and regulatory bodies involved. Key regulations and their contexts include:
Bank Secrecy Act (BSA) with Amendments from the Patriot Act and AMLA: These laws establish a comprehensive anti-money laundering framework in the U.S. They require financial institutions, including those dealing with cryptocurrencies, to assist government agencies in detecting and preventing money laundering.
Commodity Exchange Act (CEA) and Securities Exchange Act: These acts relate to the registration requirements for assets considered securities and commodities. The CEA governs commodity derivatives transactions in the U.S. and is overseen by the Commodity Futures Trading Commission (CFTC), while the Securities Exchange Act regulates securities transactions and is enforced by the Securities and Exchange Commission (SEC).
Responsible Financial Innovation Act: This proposed Act aims to create a comprehensive regulatory framework for digital assets, introducing common definitions and covering various aspects like securities, commodities, taxation, and customer protection. However, this Act is still in progress and has not been approved yet.
SEC and CFTC Oversight: The SEC and CFTC have overlapping but distinct areas of focus in cryptocurrency regulation. The SEC focuses on securities aspects like initial coin offerings (ICOs) and decentralized finance (DeFi) platforms, while the CFTC has authority over commodities and derivatives trading of cryptocurrencies like Bitcoin.
Howey Test: The SEC uses the Howey Test to determine whether a cryptocurrency is considered a security. This test assesses if the token involves an investment of money in a common enterprise with an expectation of profit derived from the efforts of others.