Legal Tender Status for Cryptocurrency: What’s Really Happening in 2025

As of 2025, cryptocurrency still isn’t legal tender in the United States. Not Bitcoin. Not Ethereum. Not even the most popular stablecoins. That hasn’t changed. But if you think that means crypto is stuck in regulatory limbo, you’re missing the bigger picture.

Legal Tender Means Something Very Specific

Legal tender isn’t just any money people accept. It’s the currency the government says you must accept to settle a debt. If you owe someone $500, and they demand payment in U.S. dollars, you can’t refuse and say, "I’ll pay you in Bitcoin." The law says they have to take the cash. That’s legal tender. And only the U.S. dollar has that status in America.

That hasn’t changed. Even after all the new laws passed in 2025, the Federal Reserve still holds the exclusive right to issue legal tender. Cryptocurrencies? They’re still property under tax law, not currency under payment law.

The GENIUS Act Changed Everything-But Not That

In July 2025, President Trump signed the Guiding and Establishing National Innovation for U.S. Stablecoins Act-the GENIUS Act-into law. This was the biggest crypto regulation in U.S. history. But here’s what it didn’t do: it didn’t make stablecoins legal tender. In fact, it made sure no one could claim they were.

The GENIUS Act forces stablecoin issuers to hold 100% reserves in cash or short-term U.S. Treasuries. They have to publish monthly reports showing exactly what backs their coins. If they go bankrupt, stablecoin holders get paid before almost every other creditor. That’s strong consumer protection.

But the law also has a clear warning built in: issuers can’t say their stablecoins are backed by the U.S. government, insured by the FDIC, or legal tender. That’s not an accident. It’s a firewall. The government wants stablecoins to be safe, reliable, and useful-but still separate from the dollar.

Bitcoin and Ethereum Got a New Home

The Digital Asset Market CLARITY Act, passed by the House in July 2025, created a new category: digital commodities. Bitcoin and most versions of Ethereum now fall under this label. That means they’re regulated by the CFTC, not the SEC.

Before this, crypto companies lived in fear. Was their token a security? The SEC said maybe. The CFTC said maybe not. That uncertainty scared off banks, exchanges, and investors. Now, if a blockchain is decentralized enough, its native token is treated like gold or wheat-not a stock.

This doesn’t make Bitcoin legal tender. But it does mean you can now trade Bitcoin on regulated exchanges with real investor protections: trade surveillance, segregated customer funds, and anti-money laundering checks. That’s a huge step toward legitimacy.

Why the SEC’s SAB 122 Move Mattered

Back in January 2025, the SEC killed its old rule, SAB 121. That rule forced banks to count crypto assets they held for customers as both an asset and a liability on their balance sheets. That doubled their capital requirements. No bank could afford it. So most refused to custody crypto at all.

SAB 122 fixed that. Now, when a bank holds Bitcoin for you, it’s treated like holding gold in a vault. No extra capital needed. No balance sheet distortion. That opened the door for Fidelity, JPMorgan, and others to finally offer full crypto custody services. Suddenly, institutional money started flowing in-not because crypto became money, but because it became safe to hold.

CFTC’s Crypto Sprint: Trading Gets Real

In August 2025, the CFTC launched its "Crypto Sprint"-a fast-track effort to let spot crypto trading happen on regulated exchanges. For the first time, you could legally buy Bitcoin directly on a CFTC-registered platform, not just trade futures or ETFs.

This wasn’t about making Bitcoin legal tender. It was about bringing crypto trading into the same legal framework as commodities like oil or soybeans. Now, hedge funds, pension plans, and even individual investors can trade crypto with the same transparency and oversight as traditional markets.

What’s Still Off Limits

Despite all this progress, three things haven’t changed:

• You still can’t pay your rent with Bitcoin and force your landlord to accept it.
• The IRS still taxes crypto as property, not currency.
• The Federal Reserve still controls the money supply-and won’t share that power.

Even countries like El Salvador that made Bitcoin legal tender didn’t make it the only money. They still use the U.S. dollar as their primary currency. The U.S. isn’t going to do the same. The dollar is too deeply embedded in global trade, defense, and finance.

So What’s the Point of All This Regulation?

The goal isn’t to replace the dollar. It’s to make crypto work within the system-not outside it.

Stablecoins can now be used for cross-border payments, payroll, and retail transactions without risking collapse. Bitcoin can be held in 401(k)s and traded on Wall Street. Crypto firms can raise capital without fear of sudden SEC enforcement.

That’s the real win. You don’t need legal tender status to build a thriving economy around digital assets. You just need clarity, safety, and access to traditional finance.

What’s Next?

The Senate still needs to pass the CLARITY Act. Once it does, the U.S. will have a full regulatory framework for crypto: stablecoins under the GENIUS Act, decentralized tokens as digital commodities under the CFTC, and centralized tokens under the SEC.

Expect more banks to offer crypto custody. More retailers to accept stablecoins. More apps to pay bills in USDC. But don’t expect a day when you walk into a grocery store and the cashier says, "That’ll be 0.0023 BTC."

Legal tender? Still the dollar. But crypto? It’s finally part of the system.