United States changes concept of money to include Bitcoin

In a historic move, several US federal agencies are collaborating to redefine the concept of “money,” including Bitcoin (BTC) and other cryptocurrencies within that scope.

The change, led by the Treasury Department, aims to adapt current legislation to the reality of the modern financial market, where digital assets play an increasingly significant role.

According to the recently published biannual regulatory agenda, the central objective is to modify the information requirements required of financial institutions operating with cryptocurrencies, both domestically and internationally.

This redefinition will involve the Board of Governors of the Federal Reserve System and the Financial Crimes Enforcement Network (FinCEN), which are working to adjust the Bank Secrecy Act, incorporating crypto assets into the definition of “money.”

Bitcoin

The move aims to ensure that cryptocurrencies are treated similarly to traditional fiat currencies in regulatory terms. The proposed redefinition classifies cryptocurrencies as “mediums of exchange that have a value equivalent to fiat currency or that act as its substitute, even though they are not legal tender.”

The inclusion of cryptocurrencies in the 1970 law will have significant implications. Banks and companies that manage digital assets will be required to report to the government all transactions that exceed the value of $10,000, under the same guidelines that apply to physical cash.

Furthermore, the proposal also provides for the possibility of breaking banking secrecy, allowing financial institutions to reveal customer information under court order or in criminal investigations.

The Treasury Department’s regulatory agenda also includes expanding reporting requirements for cryptocurrency transactions, including central bank digital currencies (CBDCs). These changes are intended to improve transparency in the digital asset market and combat illicit activities, in line with recommendations from the Financial Action Task Force (FATF).

The final draft of the regulatory proposal is expected to be reviewed in 2025, with the expectation that it will come into effect under the administration that will take office after the presidential election. This move reflects the growing recognition of cryptocurrencies as essential components of the global financial system.

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