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Several key U.S. federal agencies are working together to revise the definition of “money” to strengthen reporting requirements for financial institutions that process domestic and cross-border cryptocurrency transactions.

The U.S. Treasury Department’s semi-annual regulatory agenda, released on August 16, reveals an upcoming federal effort to level the regulatory playing field for cryptocurrencies and traditional fiat currencies. The Federal Reserve System’s Board of Governors and the Financial Crimes Enforcement Network plan to revise the meaning of “money” in the Bank Secrecy Act.

According to the agenda, the agencies want to ensure that the rules apply to transactions involving convertible virtual currencies, defined as a medium of exchange that either has an equivalent value to currency or acts as a substitute for currency but is not legal tender. The proposal will also extend reporting requirements to digital assets with legal tender status, including central bank digital currencies.

The final notification of the proposed rulemaking is currently scheduled for September 2025, subject to approval. This move comes after the U.S. government recently moved approximately 10,000 Bitcoin related to a dated Silk Road raid on August 14.

In addition to crypto, the Department of Justice is actively adapting regulations and legal mandates for artificial intelligence. On August 7, the DOJ asked the United States Sentencing Commission to update its guidelines to provide additional penalties for crimes committed with the help of AI. These recommendations are intended to go beyond the established guidelines and apply to any crime aided or abetted by simple algorithms.

In June, the U.S. Supreme Court overturned the Chevron Doctrine, which has major implications for the SEC’s regulatory authority over crypto policy.

In May, the U.S. Treasury Department and the IRS implemented new tax rules for crypto brokers, requiring transaction reporting and token fee tracking starting in 2026.

Earlier this month, Senators Wyden and Lummis criticized the Justice Department’s treatment of crypto software services as equal to unlicensed money transmitters, citing potential conflicts with the First Amendment.

This regulatory push reflects the growing recognition of crypto and digital assets as important components of the financial system. By aligning crypto reporting requirements with those of traditional currencies, regulators aim to increase transparency and combat potential illicit activity in the crypto space.

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