Top U.S. lawmakers will change the meaning of “money” for crypto

The meaning of “money” in the U.S. is about to get a serious makeover, and this isn’t just some bureaucratic mumbo-jumbo. The government is dead set on bringing cryptocurrency under the same rules as traditional cash, according to the Department of Treasury.

This is about making sure crypto plays by the same rules as fiat currency, with no exceptions. And it’s reportedly all part of a bigger plan to crack down on money laundering and terrorism financing.

The crackdown

The U.S. Department of the Treasury isn’t working alone. Big names like FinCEN (Financial Crimes Enforcement Network) are jumping in to ensure that these changes don’t just sit on paper but get enforced across the board.

FinCEN has already lined up a bunch of proposed rules. One of the key moves involves a new rule under the Anti-Money Laundering Act of 2020. They’re also revising customer due diligence requirements. 

This is tied to the Corporate Transparency Act, which demands financial institutions step up their game when it comes to identifying who they’re dealing with.

But wait, there’s more. The feds aren’t just eyeing crypto. They’re broadening their scope to other sectors too. FinCEN plans to implement new rules for residential real estate transactions, specifically targeting non-financed transfers of residential properties to legal entities or trusts. 

This means if you’re trying to move money around using real estate, you’d better be ready to report every step. Investment advisors aren’t getting off the hook either. FinCEN is cooking up a final rule to set minimum standards for anti-money laundering programs for certain investment advisors. 

These advisors will also have to report suspicious activity directly to FinCEN, just like banks and other financial institutions. FinCEN is also updating its definitions to include funding portals that help with crowdfunding. 

Crypto in the crosshairs

Let’s get back to the main event: crypto. The Board of Governors of the Federal Reserve System and FinCEN are working together to make sure the definition of “money” under the Bank Secrecy Act covers crypto. 

They’re planning to issue a revised proposal that makes it crystal clear: domestic and cross-border transactions involving “convertible virtual currency” are going to be treated the same as traditional money transfers.

But that’s not all. This new definition will also cover digital assets that have legal tender status. So, whether your digital cash is a substitute for the dollar or just a stand-in for fiat, the feds will be watching you.

To top it off, FinCEN is introducing a rule that targets people involved in the trade of antiquities. Anyone trading antiquities will now be considered a financial institution under the Bank Secrecy Act and will be subject to the same tough rules.