Cryptocurrency has become a mainstream financial asset in the United States, with millions of investors participating in buying, selling, and trading digital assets. However, due to its decentralized nature, cryptocurrency operates under a complex regulatory framework. This guide covers who regulates cryptocurrency in the U.S., the major exchanges where digital assets can be traded, and how investors can safely buy and sell crypto.
| Cryptocurrency Platform | Number of Cryptocurrencies | Costs & Fees | Customer Reviews | GMG Rating | More Info |
|---|---|---|---|---|---|
 | 120 | 1% | See Offer Capital at risk |
||
 | 150 | 3.5% | See Offer Capital at risk |
||
 | 30 | 1.99% | See Offer Capital at risk |
Who Regulates Cryptocurrency in the USA?
Cryptocurrency is regulated by multiple government agencies, each overseeing different aspects of digital asset trading and compliance. The Securities and Exchange Commission (SEC) regulates cryptocurrencies that qualify as securities, ensuring compliance with securities laws and preventing fraudulent Initial Coin Offerings (ICOs). The Commodity Futures Trading Commission (CFTC) oversees cryptocurrency derivatives like Bitcoin and Ethereum futures. The Financial Crimes Enforcement Network (FinCEN) enforces anti-money laundering (AML) and know-your-customer (KYC) requirements for cryptocurrency exchanges, while the Internal Revenue Service (IRS) treats cryptocurrency as taxable property, requiring traders to report capital gains and losses. Additionally, individual state regulators enforce their own rules, with some states requiring crypto businesses to obtain specific licenses, such as New York’s BitLicense.
Major Cryptocurrency Exchanges in the USA
Several cryptocurrency exchanges operate legally in the U.S., providing access to a variety of digital assets. The most notable platforms include:
- Coinbase – One of the largest U.S.-based exchanges, known for its user-friendly interface and strong regulatory compliance.
- Binance.US – A subsidiary of Binance, offering a wide range of cryptocurrencies with lower fees than some competitors.
- Kraken – A well-established exchange with strong security measures and support for futures trading.
- Gemini – A New York-based exchange focused on security and regulatory compliance, offering insured crypto storage.
- Crypto.com – A global exchange with a strong presence in the U.S., providing an integrated crypto wallet and Visa debit card.
- eToro – A social trading platform that allows users to buy, sell, and copy trade cryptocurrencies.
- Robinhood – Primarily a stock trading platform, but offers commission-free cryptocurrency trading.
Each of these exchanges is registered with FinCEN and complies with U.S. AML and KYC regulations, ensuring that users’ funds are protected under federal oversight.
How to Buy and Sell Cryptocurrency Safely in the USA
Buying and selling cryptocurrency safely requires due diligence and adherence to best practices for security and compliance. First, investors should choose a regulated exchange that is compliant with U.S. laws and has a strong reputation for security. When creating an account, users must complete KYC verification, which typically requires submitting government-issued identification.
Once verified, investors can fund their accounts via bank transfer, credit/debit card, or ACH deposit. Many exchanges also support stablecoins like USDC for quicker transactions. When buying cryptocurrency, investors should be mindful of exchange fees and spreads that can affect transaction costs.
For secure storage, long-term investors are advised to transfer their crypto holdings to a hardware wallet such as Ledger or Trezor, reducing exposure to exchange hacks. For those who prefer keeping funds on an exchange, enabling two-factor authentication (2FA) and withdrawal whitelist settings can enhance account security.
Selling cryptocurrency follows a similar process: users place a sell order on an exchange, withdraw funds via bank transfer, or use crypto debit cards for direct spending. Tax obligations must also be considered, as all crypto transactions in the U.S. are subject to capital gains tax, requiring proper record-keeping for reporting to the IRS.
Conclusion
Cryptocurrency is well-regulated in the U.S., with agencies like the SEC, CFTC, and FinCEN ensuring compliance and security. Major exchanges such as Coinbase, Kraken, and Gemini provide safe trading environments under federal and state laws. Investors can buy and sell crypto securely by using regulated platforms, implementing strong security measures, and maintaining compliance with IRS tax regulations. By following best practices, U.S. investors can navigate the crypto market safely and efficiently.
