US Crypto Rules: What You Can and Can't Do in 2025

When it comes to US crypto rules, the set of laws and enforcement policies that govern how Americans buy, sell, report, and use digital assets. Also known as cryptocurrency regulation in the United States, it's not a single law—it's a patchwork of rules from the IRS, SEC, FinCEN, and state agencies that change fast. If you own Bitcoin or trade Ethereum, these rules affect you whether you like it or not.

The IRS, the U.S. tax agency that treats cryptocurrency as property, not currency wants you to report every trade, swap, or sale. Even if you traded Bitcoin for Dogecoin, that’s a taxable event. The IRS has been sending letters to users since 2019 and now uses data matching from exchanges like Coinbase and Kraken. If you didn’t report, you could owe back taxes, penalties, or worse. Meanwhile, the SEC, the agency that regulates securities and has been cracking down on tokens it claims are unregistered investments is targeting DeFi platforms, meme coins, and even NFT projects. They’ve sued Ripple, Coinbase, and Binance—saying these platforms operated like unlicensed stock exchanges. You don’t need to be a company to feel the heat. If you’re staking tokens or earning yield, the SEC might see that as selling an unregistered security.

Then there’s FinCEN, the financial crimes unit that requires crypto exchanges to collect your identity and report large transactions. That’s why every exchange asks for your ID, Social Security number, and proof of address. It’s not just bureaucracy—it’s the law. If you use a non-compliant exchange or try to move crypto through a privacy tool like a mixer, you could trigger a money laundering alert. And while some states like Wyoming are trying to make crypto-friendly laws, federal rules still override them. The big question in 2025? Will Congress finally pass a clear crypto bill? So far, no. That means you’re stuck navigating a system where the rules are written by regulators, not lawmakers.

What you’ll find here isn’t legal advice. It’s real examples from people who got caught, clear breakdowns of what the agencies actually require, and updates on the latest enforcement actions. You’ll see how crypto taxes work in practice, why some exchanges shut down overnight, and what happens when you ignore a subpoena. No fluff. No theory. Just what you need to know to stay on the right side of the law while using crypto in the U.S.