The Department of Treasury plans to classify cryptocurrencies and other blockchain assets as ‘money’ under the Bank Secrecy Act (BSA) for transaction and tax transparency.
Let’s explore the good, the bad, and the ugly of digital assets joining the mainstream financial system.
US Regulators’ Crypto Crackdown
The updated regulations (poised to roll out by September 2025) will reportedly cover a wide range of virtual assets, including future central bank digital currencies (CBDCs) and stablecoins (like $USDC and $USDT).
A clear legal framework will increase the legitimacy of digital assets, improve consumer protection, and enhance transparency, likely boosting investor trust and blockchain adoption. But not without its woes.
The Department of the Treasury’s regulatory agenda suggests that if crypto and other virtual tokens become classified as money, both cross-border and domestic crypto transactions would be subject to more stringent reporting requirements.
Additionally, financial entities that handle crypto will face new burdens, such as verifying customer identity, upholding detailed transaction records, and submitting tax reports.
The classification may also hinder digital assets’ innovation and raise compliance costs for crypto businesses.
Our Verdict – Regulatory Oversight Damages the Blockchain’s Ethos
If the BSA classifies certain cryptocurrencies as money, increased regulation could attract mainstream users to the blockchain ecosystem.
Regulatory oversight would introduce legal censorship, which could hinder innovation and diminish digital assets’ decentralized nature – one of its chief merits.
In turn, this could discourage crypto investors and businesses who value autonomy.
Are crypto investors willing to compromise freedom for consumer protection?
References
- Regulatory agenda 2024-16461 (Department of the Treasury)
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Leah Alger Senior Crypto Journalist 
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