Bitcoin in the United States: rules, tax and how it's priced
Bitcoin is priced worldwide in US dollars, so the BTC/USD rate on this page is the benchmark that other currencies are converted from. Small purchases are often shown as a fraction of a bitcoin or in satoshis (100 million sats = 1 BTC). The figures here are the international BTC/USD price, before exchange fees, spreads and any premium charged by your app or broker.
Is bitcoin legal in the United States? Regulation
Buying, holding and selling bitcoin is legal in the United States, but it is not legal tender. There is no single federal licence for crypto exchanges. Businesses that exchange or transmit crypto must register with FinCEN, the Treasury's financial-crimes unit, as money services businesses, and most states also require a money transmitter licence. New York goes further: firms serving New York residents need a BitLicense or a trust charter from the Department of Financial Services (NYDFS). The GENIUS Act, signed on 18 July 2025, created the first federal framework for payment stablecoins, which must be fully backed by US dollars or similar low-risk assets; regulators were still finalising its implementing rules in 2026. A broader market-structure bill, the CLARITY Act, passed the House in July 2025. On 15 September 2026 a Senate procedural vote to begin debate on it failed by 49 votes to 50, well short of the 60 needed. The bill stays on the Senate calendar and could be brought back, but as of October 2026 there is no federal law dividing oversight of crypto markets between the SEC and the CFTC, and the two agencies are working through guidance and proposed rules instead.
How is bitcoin taxed in the US?
The IRS treats bitcoin and other digital assets as property, not currency. Selling bitcoin for dollars, exchanging it for another crypto asset or using it to pay for goods or services is a taxable disposal, and you work out a capital gain or loss against what you paid. Gains on bitcoin held for one year or less are short-term and taxed at ordinary income tax rates. Gains on bitcoin held for more than a year are long-term and taxed at 0%, 15% or 20%, and higher earners may also owe the 3.8% net investment income tax. Crypto received from mining, staking or as pay for work is ordinary income at its dollar value when you receive it. Form 1040 asks every filer whether they received or disposed of digital assets during the year. Brokers now report too: they issue the new Form 1099-DA showing gross proceeds for transactions from 2025, and from 2026 they must also report cost basis for digital assets acquired in a custodial account on or after 1 January 2026. State income tax may apply on top. In September 2026 the House Ways and Means Committee released a crypto tax bill that would, among other things, apply wash-sale rules to digital assets, but it is not law.
Buying bitcoin in the US: exchanges and ETFs
Americans buy bitcoin in dollars through crypto exchanges and apps, many brokerages and some banks. Check that a provider is registered with FinCEN and licensed in your state; for New York, the NYDFS lists the virtual currency businesses it regulates. Since the SEC approved spot bitcoin exchange-traded products on 10 January 2024, investors can also get bitcoin exposure through an ordinary brokerage or retirement account. These funds hold bitcoin, charge an annual fee and are taxed like other securities. In March 2025 an executive order created a Strategic Bitcoin Reserve made up of bitcoin the federal government already held, mostly from forfeitures. Keep records of what you paid for each purchase, because cost basis on assets bought before 2026, or held outside a broker, is your responsibility.
Legal and tax information last reviewed October 2026. Crypto rules change quickly — check with the regulator or tax authority, or a qualified adviser, before acting. This is not tax, legal or investment advice.