Crypto 101
Whether you’re an individual exploring investments or an operating business, cryptocurrency is transforming finance. From personal portfolios to business transactions, “crypto” offers new opportunities but comes with complexities. Let’s dive into the basics, key terms, regulations, court cases, and 2025 updates.
WHAT IS CRYPTO?
Cryptocurrency is a form of digital currency secured by cryptography and powered by decentralized blockchain technology—meaning it operates independently of traditional banks or governments. Every transaction is recorded on a public, tamper-resistant ledger known as the blockchain, which ensures transparency, traceability, and security. For instance, when a Long Island retailer accepts Bitcoin or an individual in Westchester invests in Ethereum, those transactions are verifiable in real-time on the blockchain. This decentralized system builds trust by allowing users to independently confirm the legitimacy of every transaction without relying on intermediaries.
TERMINOLOGY
Blockchain: A public digital ledger recording all crypto transactions.
Wallet: A digital tool to store crypto, secured by a private key.
Private Key: A secret code granting access to your crypto.
Exchange: A platform (e.g., Coinbase) for buying or selling crypto.
Stablecoin: Crypto pegged to assets like the U.S. dollar for price stability.
Bitcoin: The first cryptocurrency, often used as a store of value.
Ethereum: A platform supporting smart contracts and decentralized apps.
Smart Contract: Self-executing agreements coded on blockchain.
Mining: Validating blockchain transactions to earn crypto rewards.
Decentralized Finance (DeFi): Financial services using blockchain, bypassing traditional banks.
BITCOIN
Launched in 2009, Bitcoin is the first and largest cryptocurrency by market value, often called “digital gold” for its role as a store of value. It’s used for payments or investments, with transactions verified by miners. For example, a Westchester retailer might accept Bitcoin for goods.
ETHEREUM
Introduced in 2015, Ethereum is a platform for running smart contracts and decentralized apps. Its currency, Ether, supports transactions and app development. An individual in Long Island might use Ether to invest in a DeFi project.
KEY COURT CASES
SEC v. Ripple Labs (July 2023, appeal 2025): A court ruled Ripple’s institutional XRP sales were securities, but programmatic sales to retail investors were not, affecting how individuals and businesses classify crypto transactions. The SEC’s January 2025 appeal argues retail sales should also be securities, creating uncertainty.
SEC v. Coinbase (June 2023, dismissed February 2025): The SEC alleged Coinbase operated as an unregistered exchange, but the case was dropped, signaling a shift to lighter regulation under the Trump administration. This impacts businesses using exchanges.
Ames v. Ohio (June 2025): While not crypto-specific, this ruling ensured equal standards for workplace discrimination claims, relevant for crypto firms’ HR policies.
REGULATIONS IN NEW YORK
New York’s BitLicense, enforced by the New York Department of Financial Services, requires crypto businesses to register, ensuring consumer protection and anti-money laundering compliance. For example, a Westchester startup offering crypto services must obtain a BitLicense. Federally, the SEC regulates some crypto as securities, while the CFTC oversees commodities, creating overlapping rules. The GENIUS Act (July 2025) regulates stablecoins, requiring issuers to be banks or licensed firms with full reserves and audits, impacting businesses and investors.
2025 UPDATES
The Trump administration’s pro-crypto stance has reshaped regulation. In January 2025, President Trump’s executive order created the President’s Working Group on Digital Asset Markets, chaired by David Sacks, to review crypto rules and oppose central bank digital currencies (CBDCs). The SEC, under new Chair Paul Atkins, paused high-profile enforcement actions and formed a Crypto Task Force to clarify regulations. In July 2025, the SEC approved in-kind creations/redemptions for Bitcoin and Ethereum ETFs, allowing market makers to use crypto directly, boosting efficiency for investors. Posts on X highlight the GENIUS Act’s stablecoin rules, requiring full backing and audits, benefiting businesses and individuals using stablecoins. However, private litigation against exchanges persists, indicating ongoing risks.
WHY IT MATTERS
For individuals, crypto offers investment potential but requires understanding tax rules and risks like volatility.
Businesses can use crypto for payments or fundraising, but face compliance challenges, especially in New York’s strict regulatory environment. A Westchester retailer adopting stablecoins for transactions must ensure BitLicense compliance and monitor federal shifts.
Crypto holds promise for New York individuals and businesses, but its evolving landscape demands caution. Our team is here to help individuals and businesses navigate crypto regulations, from investments to transactions. Contact Marano Law P.C. for personalized advice today.
Disclaimer: This post is for informational purposes only and is not legal or tax advice. Consult our qualified attorneys for your specific needs.
