The regulation of cryptocurrencies in the United States is marred by ambiguity and confusion. Despite years of growth in the digital asset space, the US government still cannot clearly define whether cryptocurrencies are securities or commodities.
This uncertainty has led to regulatory opportunism, where agencies pursue jurisdiction on a case-by-case basis, often relying on arbitrary designations rather than clear legal criteria.
The lack of clear legislation has resulted in a situation where the government can 'regulate first, clarify later', which undermines the rule of law and creates an uncertain environment for market actors and investors.