U.S. Plans to Amend Bank Secrecy Law to Mandate Disclosure of All Cryptocurrency Transactions

The United States Department of the Treasury plans to amend the Bank Secrecy Act to include cryptocurrencies in the definition of “currency” and to impose new reporting requirements. This measure is intended to enhance financial transparency by placing cryptocurrencies under the same reporting rules as traditional fiat currencies. The final rules are expected to be issued in September 2025, and will cover convertible currencies. The revised rules will cover convertible virtual currencies and digital assets with legal tender status, including central bank digital currencies (CBDCs). Additionally, the U.S. Department of Justice is updating regulations to address crimes facilitated by the use of artificial intelligence (AI), proposing to impose additional penalties for such crimes.Consensys, the developer of the MetaMask wallet, has asked the IRS to delay the implementation of the new tax regulations, saying that they could be burdensome for entities without traditional reporting obligations. The new regulations would place reporting requirements on cryptocurrency brokers similar to traditional brokers, requiring the filing of Form 1099-DA.