the startups.com platform about startups.comCheck out the new Startups.com - A Comprehensive Startup University
Education
Planning
Mentors
Funding
Customers
Assistants
Clarity
Categories
Business
Sales & Marketing
Funding
Product & Design
Technology
Skills & Management
Industries
Other
Business
Career Advice
Branding
Financial Consulting
Customer Engagement
Strategy
Sectors
Getting Started
Human Resources
Business Development
Legal
Other
Sales & Marketing
Social Media Marketing
Search Engine Optimization
Public Relations
Branding
Publishing
Inbound Marketing
Email Marketing
Copywriting
Growth Strategy
Search Engine Marketing
Sales & Lead Generation
Advertising
Other
Funding
Crowdfunding
Kickstarter
Venture Capital
Finance
Bootstrapping
Nonprofit
Other
Product & Design
Identity
User Experience
Lean Startup
Product Management
Metrics & Analytics
Other
Technology
WordPress
Software Development
Mobile
Ruby
CRM
Innovation
Cloud
Other
Skills & Management
Productivity
Entrepreneurship
Public Speaking
Leadership
Coaching
Other
Industries
SaaS
E-commerce
Education
Real Estate
Restaurant & Retail
Marketplaces
Nonprofit
Other
Dashboard
Browse Search
Answers
Calls
Inbox
Sign Up Log In

Loading...

Share Answer

Menu
Cryptocurrency: What are the legal requirements for a cryptocurrency exchange in the United States that does not handle fiat currency?
MO
MO
Michael O'Brien, Lobbyist [MOB Advocacy]-turned-Investor [Síol VC] answered:

I don't agree that the US government hates cryptocurrency or crypto exchanges, though I will say that the USG is still unsure how to manage crypto.

The legal requirements vary based on what state you are trying to set up an exchange.

Current Federal law puts regulation of crypto under the jurisdiction of the Commodities Futures Trading Commission. While the Securities Exchange Commision has brought some enforcement cases forward, the courts as of now have sided with the CFTC. So make sure you are following those requirements.

At the same time, each state has (probably, but I can verify) their own registration rules for anyone that participates in bitcoin (i.e. mining, trading, selling, or thinking about mining, trading or selling etc). Many states are taking a second look at those rules as crypto grows in popularity and as regulators figure out how to regulate it appropriately. For example, NYS has registration rules, but it also has legislation that would form a task force to evaluate current rules and propose changes. NY also had the first locality ban cryptomining (Plattsburg), so that will also be part of the discussion. It is timely, as some of the big Wall Street players are looking at launching U.S.-based exchanges.

Incidentally, NYS also has legilstion to study the possibility to launch its own cryptocurrency. That could get interesting.

Hope that helps. Happy to set up a call to chat more about any specific state regulations.

Good luck!

Talk to Michael Upvote • Share
•••
Share Report

Answer URL

Share Question

  • Share on Twitter
  • Share on LinkedIn
  • Share on Facebook
  • Share on Google+
  • Share by email
About
  • How it Works
  • Success Stories
Experts
  • Become an Expert
  • Find an Expert
Answers
  • Ask a Question
  • Recent Answers
Support
  • Help
  • Terms of Service
Follow

the startups.com platform

Startups Education
Startup Planning
Access Mentors
Secure Funding
Reach Customers
Virtual Assistants

Copyright © 2025 Startups.com. All rights reserved.