US Citizens and Crypto: What You Can and Can’t Do in 2025

For US citizens, individuals subject to U.S. tax law and financial regulations, regardless of where they live. Also known as American residents, they must navigate one of the most complex crypto environments in the world. If you’re a U.S. citizen, crypto isn’t just about buying and selling—it’s about reporting, compliance, and avoiding costly mistakes. The IRS treats crypto as property, not currency. That means every trade, every airdrop, every staking reward could trigger a taxable event. You can’t ignore it. The IRS has been auditing crypto users since 2021, and they’re getting better at matching wallet addresses to tax returns.

That’s why crypto exchanges, platforms where users trade digital assets, often requiring KYC and reporting to U.S. authorities. Also known as crypto trading platforms, they are either fully compliant (like Coinbase or Kraken) or completely off-limits. Exchanges like Binance.com don’t serve U.S. users anymore—not because they’re blocked, but because they refuse to meet U.S. regulatory standards. If you try to use a foreign exchange without KYC, you’re not just risking your funds—you’re risking a tax audit or even criminal charges. And it’s not just exchanges. The SEC is cracking down on DeFi platforms that offer yield farming or staking to U.S. citizens without proper registration. You can’t claim ignorance if you’re using a platform that’s clearly targeting Americans.

IRS crypto reporting, the legal obligation for U.S. taxpayers to disclose all cryptocurrency transactions on Form 1040. Also known as crypto tax compliance, it is non-negotiable. Even if you only sold $50 worth of Bitcoin, you still need to report it. The IRS doesn’t care if you lost money. They care if you moved crypto. And if you got an airdrop—yes, even a free token—you owe taxes on its fair market value the day you received it. No exceptions. No loopholes. Tools like Koinly or TokenTax help, but they don’t replace your responsibility. The same goes for crypto gains on foreign exchanges. If you’re a U.S. citizen, the IRS sees your entire crypto activity, no matter where it happened.

And then there’s the legal gray zone: tokens like EGP, GNON, or WMTon. Some are outright scams. Others are unregistered securities. The SEC has sued over 30 crypto projects in the last two years for selling unregistered securities to U.S. citizens. If you bought one of these tokens and it crashed, you can’t just blame the market—you might have broken the law by participating in an illegal offering. That’s why every post in this collection focuses on what actually matters to you: what’s legal, what’s risky, and what you need to avoid. You won’t find fluff here. Just straight answers on exchanges you can use, airdrops you can claim safely, and tokens that could land you on the IRS radar.

Below, you’ll find real reviews, real warnings, and real guidance—no theory, no guesswork. Whether you’re trying to figure out if SparkSwap is still active, whether RACA’s airdrop is worth your time, or whether you should even touch a token called DOGE that claims to be government-backed, the answers are here. This isn’t about getting rich quick. It’s about staying out of trouble while still participating in crypto the right way.