The U.S. government is taking significant steps toward redefining the concept of "money," aiming to bring cryptocurrency under the same reporting requirements as traditional fiat currency. In a recent move, the U.S. Department of the Treasury revealed plans to collaborate with the Federal Reserve System and the Financial Crimes Enforcement Network (FinCEN) to update the Bank Secrecy Act. The revision aims to treat cryptocurrencies as money, thereby expanding the reporting obligations for financial institutions handling both domestic and international crypto transactions.

According to the proposed changes, the new rules would apply to any transaction involving convertible virtual currency, such as Bitcoin or Ethereum, which functions as a medium of exchange but lacks legal tender status. The regulations are also expected to cover digital assets with legal tender status, including central bank digital currencies (CBDCs).

The final version of this proposal is anticipated to be released in September 2025, pending necessary approvals.

This regulatory shift comes on the heels of a significant move by the U.S. government, which recently transferred around 10,000 Bitcoin connected to the notorious Silk Road raid. As the government tightens its grip on cryptocurrencies, the Department of Justice (DOJ) is also focusing on the evolving landscape of artificial intelligence (AI).

In an effort to combat AI-assisted crimes, the DOJ has proposed updates to the U.S. Sentencing Commission's guidelines. These updates seek to impose harsher penalties not just for crimes committed with AI but also for those facilitated by simple algorithms. The move has sparked a broader conversation about the intersection of technology, crime, and regulatory oversight.