Update on United States Crypto Regulation: 2022
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Book a free exploratory callThis piece was originally published in 2022 and updated in May 2026. It captures the US digital asset regulation landscape as it stood at that time. Some developments described here have since evolved. For current guidance, see our comprehensive US Crypto Tax Guide.
February 2022 is going to be an interesting month for U.S. digital asset regulation. The national security memorandum, expected to be released in February 2022, will give government agencies 3 to 6 months to develop regulatory proposals. The White House will then act as the policy coordinator, however they will not give regulatory recommendations.
The parties involved in looking holistically at digital assets and developing a set of policies are the following:
- The State Department,
- Treasury Department,
- National Economic Council,
- Council of Economic Advisers, and
- White House National Security Council.
The involvement of the White House National Security Council is because digital assets do not stay in one country and working together with other countries is necessary.
The Bank of America has stated that once rules are in place it will eliminate uncertainty over how to invest in the digital asset market and if looked at in the long run regulations could be very positive.
Digital Asset Wallet Rule
The Digital Asset Wallet Rule will enforce know-your-customer (KYC) on un-hosted or self-hosted digital asset wallets. Know-your-customer requires digital asset trading platforms to collect names, addresses, and other personal details from all individuals who want to transfer digital assets to their private wallets.
This rule was first brought up by former Treasury Secretary, Steven Mnuchin, in 2020. It received a lot of scrutiny and resistance back in 2020 as it could be impossible for some wallets to implement.
However, on Monday, 31 January 2022, the U.S. Treasury Department posted the proposed rule in the Federal Register:
FinCEN is proposing to amend the regulations implementing the Bank Secrecy Act to require banks and money service businesses to submit reports, keep records, and verify the identity of customers in relation to transactions involving convertible virtual currency (CVC) or digital assets with legal tender status held in un-hosted wallets, or held in wallets hosted in a jurisdiction identified by FinCEN, according to the Federal Register post.
This means the Digital Asset Wallet Rule is being looked at again and considered.
The Beginning
The U.S. has no legal framework for the regulations of digital asset exchanges, with this said it is about to change very quickly in 2022. More rules are on the way, whether you agree with regulations or not. This is the beginning of change and we believe that 2022 is going to be a year with a lot of regulation movement.
Official Sources
- Executive Order 14067 on Ensuring Responsible Development of Digital Assets: the 2022 executive order setting the federal policy agenda for digital assets.
- Executive Order 14178 on Strengthening American Leadership in Digital Financial Technology: the later executive order that reset US digital asset policy.
- Federal Register: Gross Proceeds and Basis Reporting by Brokers: the final broker reporting regulations that followed the legislative changes.
- IRS: Digital Assets: the central IRS page tracking current digital asset guidance.
Frequently Asked Questions
Is this article still current?
It was originally published in 2022 and updated in May 2026, and it captures the US digital asset regulation landscape as it stood at that time. Some of the developments described have since evolved.
What was the 2022 national security memorandum?
A memorandum expected in February 2022 that would give government agencies three to six months to develop regulatory proposals on digital assets. The White House was to act as policy coordinator without giving regulatory recommendations.
Which agencies were involved in the policy work?
The State Department, the Treasury Department, the National Economic Council, the Council of Economic Advisers and the White House National Security Council. The National Security Council was included because digital assets do not stay within one country.
What is the Digital Asset Wallet Rule?
A rule that would enforce know-your-customer requirements on un-hosted or self-hosted wallets, requiring trading platforms to collect names, addresses and other personal details from anyone transferring digital assets to a private wallet. It was first raised by former Treasury Secretary Steven Mnuchin in 2020 and met resistance at the time.
What did FinCEN propose in January 2022?
FinCEN proposed amending the regulations implementing the Bank Secrecy Act to require banks and money service businesses to submit reports, keep records and verify customer identity for transactions involving convertible virtual currency or digital assets with legal tender status held in un-hosted wallets, or in wallets hosted in a jurisdiction identified by FinCEN.
Master the topic: How Is Crypto Taxed in the US? 2026 Rules & Rates
Chris Herbst is the founder of CountDeFi, a crypto tax specialist whose qualifications span investment management, financial analysis, mathematical statistics and computer science. He holds the Chartered Business Accountant in Practice (CBAP) designation with the Chartered Institute for Business Accountants (CIBA) and the General Tax Practitioner (GTP) designation with the South African Institute of Taxation (SAIT). His combined background in investments, accounting and tax, mathematical statistics and computer science underpins his work in complex crypto tax reporting. This article is for educational purposes only and does not constitute tax, legal or investment advice. Consult a qualified tax professional for guidance specific to your situation. View our Editorial Policy.
